The US Treasury published a proposed rule on October 22, 2026 to implement the COINS Act, widening limits on US investment in sensitive tech in countries of concern. Separately, DHS ordered DeepSeek products excluded and removed from federal civilian agency systems. The Treasury rule is not final; comments are due December 7.
The US Treasury Department published a proposed rule on October 22, 2026 to carry out the Comprehensive Outbound Investment National Security (COINS) Act, enacted Dec. 18, 2025 as part of the FY2026 NDAA, according to a Treasury press release. Separately, the Department of Homeland Security (DHS) ordered DeepSeek removed from federal civilian IT.
Treasury wants wider limits on outbound tech investment. The proposal covers semiconductor technologies and microelectronics; artificial intelligence systems; quantum information technologies; high-performance computing and supercomputing; and hypersonic systems. Treasury says the Secretary has added biotechnology to the proposed regulations. The rule applies to countries of concern (under the existing program, China, including Hong Kong and Macau).
The Department of Homeland Security order covers affiliates and third-party services built on DeepSeek and warns that use could expose sensitive data to China.
It is a proposal, not a final rule. Treasury is taking public comments until December 7, 2026. Details are on Treasury's Outbound Investment Security Program page. The final text could change after comments close.
DHS orders DeepSeek off federal systems. Homeland Security Secretary Markwayne Mullin issued the order after reviewing a Federal Acquisition Security Council recommendation. Exclusion and Removal Order #2026-01 was first released July 24, 2026 and published in the Federal Register on Oct. 20 (91 FR 66346, docket DHS-2026-0628). It bars agencies from buying DeepSeek products. It also requires removal of DeepSeek products, affiliate products, and third-party products and services developed using DeepSeek implementations.
Who is affected. The Treasury proposal would affect US investors and companies putting money into covered tech in countries of concern. The DHS order applies to Federal Civilian Executive Branch Agencies except for their national security systems and secure compartmented information systems. Agencies may seek exceptions within 60 days. Private DeepSeek users are not directly covered.
In plain terms. The US government wants to stop American money from helping China build sensitive technology. It is also telling its civilian agencies to stop using a Chinese AI model and anything built on it.
The rules target China along with Russia, Iran, North Korea and Cuba, implementing the COINS Act and expanding the Outbound Investment Security Program.
Key terms.
What affected readers should do.
What is next. Treasury will review comments after December 7 before issuing a final rule. Updates will appear on Treasury's program page and in the Federal Register.
Tap a lens to see what this story means for you.
Liked this? The Brief brings you the whole day in tech, verified, every morning.
Two minutes, free forever. What's in The Brief →
See what’s happening right now
The Feed runs all day — short, verified briefs the moment they break.
Open the FeedFollow @thecircuitry_
Every story we publish, as it happens. No noise between.
Reader-supported
The Circuitry is a passion project I've always wanted to build, and I love the work behind it.
Running it costs real money. APIs, hosting, time. To keep improving the site and growing this into something useful for everyone, those costs have to be covered.
Any contribution is appreciated. If not, no pressure. Thanks for reading.
Metaplanet secured approval for a 93.7% stake in Super League, USD1 lost over $400 million in market cap, and Qubic reportedly paused after an about $1.4 million exploit.
Richard Heart's detention in Istanbul preceded a roughly $246 million drop in HEX's market cap, Ledger unveiled its $849 Atom wallet, and Starknet put a post-quantum layer-1 move to a vote, per Cointelegraph's weekly digest.
According to CNBC's Morning Squawk, stocks fell Wednesday on worries over AI-related debt loads, and September CPI came in hotter than expected, marking the 66th straight month above the Fed's 2% target. Chip stocks extended losses in Thursday premarket trading.
Epic Games has announced the AI MegaJam, a November 12-15 event where creators will build games in four days using AI tools with Unreal Engine and UEFN. The jam offers cash prizes plus development continuation grants of up to $50,000 for standout projects.
Meta says it will create a new class of non-voting Class C shares to fund AI investment, acquisitions and employee compensation, effective in January 2027. The company also narrowed its 2026 capital expenditure outlook to $135 billion to $145 billion, raising the low end.
