On 22 October 2026 the U.S. Treasury issued a notice of proposed rulemaking implementing Subtitle C of the COINS Act, which was enacted on 18 December 2025. It builds on the existing Outbound Investment Security Program at 31 C.F.R. Part 850. The rule is scheduled for publication in the Federal Register on 26 October (FR Doc. 2026-21786). Comments close 7 December 2026.
What it would do
- “SI systems”: it “expands the existing prohibition to more broadly restrict U.S. person investment into country of concern entities that develop any SI system, which would eliminate the existing notification requirement for these transactions.”
- New sectors: prohibitions and notification duties for hypersonic systems and biotechnology, plus expanded high-performance computing and quantum (algorithms and applications) coverage.
- Countries of concern: China (including Hong Kong and Macau), Cuba, Iran, North Korea, Russia, and Venezuela “under the regime of Nicolás Maduro Moros”. Treasury’s FAQ says that regime “no longer exists” after the U.S. recognised Delcy Rodríguez on 5 March 2026, so Venezuela does not meet the definition. It still tells investors to check whether the rule applies.
- Exceptions: publicly traded securities, index funds and ETFs, small LP commitments (US$2 million or less), and new exceptions for de minimis deals (US$50,000 in 12 months, for notification only), underwriting and bank lending.
- Enforcement: civil penalties up to the IEEPA maximum, and the power to compel divestment.
The proposed rule uses the term “super intelligence systems” (SI systems) in place of the term “AI Systems.” — Treasury fact sheet, 22 October 2026
Why “SI” instead of “AI”
Treasury’s footnote explains the wording. Executive Order 14434, “Inaugurating the Era of Super Intelligence” (29 September 2026, 91 FR 63129), section 2, requires agencies to use “Super Intelligence” and “SI” in place of “Artificial Intelligence” and “AI” in certain documents. The proposed rule follows it. The rename does not on its own change what technology is covered. The NPRM text defines the term.
What this piece refuses
This is a proposal. Nothing is banned until a final rule takes effect. We do not estimate capital flows affected, because Treasury gives no figure in the fact sheet. We do not treat the “SI” wording as a new technical category beyond what EO 14434 and the NPRM say.
Bottom line
Treasury’s COINS Act proposal would prohibit U.S. investment in country-of-concern firms developing any AI (“SI”) system, add hypersonics and biotech, and take comments until 7 December.
