Treasury says COINS Act rulemaking underway; members press for clarity on outbound screening

Members of the House Financial Services subcommittee pressed Treasury officials about implementing the outbound-investment provisions Congress added to the National Defense Authorization Act (referred to in the hearing as the COINS Act).

Representative Barr noted the administration's reported foreign direct investment commitments and asked how Treasury will manage COINS Act implementation while preserving beneficial outbound transactions. "We have 450 days after enactment to issue regulations," Barr said, pressing the witness on timelines and interagency coordination.

Assistant Secretary Chris Pilkerton said Treasury will follow a full notice-and-comment rulemaking process. "We will be getting a lot of information out there," he said, adding that Treasury has published FAQs and will coordinate closely with the Office of Foreign Assets Control and other agencies as it designs the regulatory regime.

Members raised specific operational questions: how national-interest exemptions under the statute will be applied, how Treasury will coordinate OFAC-related sanctions authorities with the COINS rules, and whether exemptions could preserve outbound investments that benefit U.S. security and competitiveness. Pilkerton affirmed the statute contemplates national-interest exemptions and said Treasury aims to balance security constraints with potential benefits of outbound deals.

The committee requested further detail and follow-ups; Pilkerton offered to provide additional information through Treasury legislative staff and to engage with committee members during rule development.

Next steps: Treasury will issue an RFI and provide public guidance and FAQs as it prepares rulemaking, with members tracking the statutory 450-day timeline.