The US Treasury has proposed rules under the COINS Act, part of the 2026 defence authorisation law, that would tighten limits on American money flowing into technology companies in China and other “countries of concern”. Announced on 22 October, the proposal covers AI, semiconductors, quantum technology, supercomputing and hypersonics, and adds biotechnology for the first time.
For AI the change is significant. Under the current programme some AI deals only have to be reported to Treasury. The proposal replaces “AI systems” with “super intelligence systems”, following a presidential executive order, and would prohibit US investment in any covered company that develops one, ending the reporting route for those deals. Treasury stresses the rule “would not prohibit all investment activity in countries of concern”. The countries listed are China (including Hong Kong and Macau), Cuba, Iran, North Korea and Russia; Treasury says Venezuela no longer meets the definition.
Why it matters: venture funds, and the AI start-ups they back, would need to check deals against a much wider ban. Comments are due by 7 December 2026, and a final rule with an effective date will follow. Read Treasury’s announcement and fact sheet.