COINS Act: How New Regulations Impact Overseas Coin & Bullion Investments

The Comprehensive Outbound Investment National Security Act of 2025 (COINS Act) marks a significant shift in how the U.S. government regulates investments flowing out of the country, especially concerning sensitive technologies and countries of concern. Signed into law on December 18, 2025, the COINS Act codifies and expands the existing Outbound Investment Security Program (OISP). This means stricter oversight and potential restrictions on where and how U.S. individuals and entities can invest in overseas coin and bullion ventures, particularly those involving digital assets.

Understanding the COINS Act

The COINS Act is primarily designed to safeguard U.S. national security by preventing American capital from inadvertently supporting the military, intelligence, surveillance, or cyber-enabled capabilities of countries deemed as potential adversaries. The Act broadens the scope of the OISP in several key ways:

Expanded List of Countries of Concern: Beyond China (including Hong Kong and Macau), the COINS Act now includes Cuba, Iran, North Korea, Russia, and Venezuela under the Maduro regime. While existing U.S. sanctions already heavily restrict investment in these nations, the COINS Act adds another layer of scrutiny.
Broader Technology Coverage: In addition to semiconductors, microelectronics, quantum information technologies, and AI systems already covered under the OISP, the COINS Act extends to investments in hypersonic systems, high-performance computing, and supercomputing sectors.
Codification and Formalization: The COINS Act provides a statutory basis for the OISP, moving it from an Executive Order-based program to one grounded in law. This is intended to provide more stability and predictability for investors.
Increased Resources for Enforcement: The Act authorizes \$150 million to the Treasury Department for each of the next two fiscal years, signaling a commitment to robust implementation and enforcement of the OISP.

Impact on Overseas Coin and Bullion Investments

So, how does the COINS Act specifically affect investments in overseas coin and bullion, especially those involving crypto assets? Here’s a breakdown:

Due Diligence Becomes More Critical: U.S. investors must conduct thorough due diligence to ensure that their investments do not directly or indirectly benefit entities in countries of concern or those involved in prohibited or notifiable technologies. This includes tracing the supply chain and ownership structures of overseas coin and bullion operations.
Potential for Increased Scrutiny: The Treasury Department is authorized to create a non-exhaustive database of “covered foreign persons” engaged in activities involving prohibited or notifiable technologies. While not mandatory, such a database could increase scrutiny on transactions involving entities on the list.
“Knowingly Directing” Prohibition: The COINS Act expands the “knowingly directing” prohibition to include “notifiable transactions.” This means that U.S. persons can be held liable for directing a foreign person’s transaction that would be prohibited or notifiable if undertaken by a U.S. person.
Impact on Digital Assets: The COINS Act’s focus on emerging technologies like AI and high-performance computing could have implications for overseas coin and bullion investments involving digital assets. For example, investments in cryptocurrency mining operations in countries of concern that utilize advanced computing infrastructure could face increased scrutiny.
Notification Requirements: The COINS Act requires U.S. persons to notify the Treasury Department about certain categories of investments, defined as “covered transactions,” undertaken in “countries of concern.” This adds an administrative burden for investors but is crucial for compliance.

Navigating the New Regulatory Landscape: Advice for Investors

Given the complexities of the COINS Act, here’s some advice for U.S. investors involved in overseas coin and bullion ventures:

Consult with Legal Experts: Seek guidance from attorneys specializing in international trade, investment, and national security law to ensure compliance with the COINS Act and related regulations.
Enhance Due Diligence Processes: Implement robust due diligence procedures to identify potential risks associated with investments in countries of concern or those involving sensitive technologies.
Monitor Regulatory Updates: Stay informed about the Treasury Department’s implementing regulations, which are expected by March 2027. These regulations will provide further clarity on the scope and application of the COINS Act.
Consider Alternative Investment Strategies: Explore investment opportunities in jurisdictions outside of the countries of concern to mitigate the risks associated with the COINS Act.
Transparency is Key: Maintain transparent records of all transactions and be prepared to provide detailed information to the Treasury Department if requested.

The Future of Overseas Coin and Bullion Investments

The COINS Act represents a significant shift in the regulatory landscape for overseas investments, particularly in the coin and bullion sectors. While the full impact of the Act remains to be seen, it’s clear that U.S. investors must adapt to a more stringent environment. By understanding the requirements of the COINS Act, seeking expert advice, and implementing robust compliance measures, investors can navigate the new regulatory landscape and continue to participate in the global coin and bullion market while safeguarding U.S. national security interests.

The COINS Act is effectively the inverse of the Committee on Foreign Investment in the United States, or CFIUS, in which the Treasury regulates foreign investments in U.S. business and real estate companies for security threats.

Disclaimer: This blog post is for informational purposes only and does not constitute legal or financial advice. Investors should consult with qualified professionals before making any investment decisions.