US Treasury proposes wider outbound-investment rules, including a ban on some super-intelligence investments

The Federal Register published on 26 October 2026 a proposed rule from the Treasury Department's Office of Investment Security, document 2026-21786, 91 FR 67396. Written comments must be received by 7 December 2026. The notice does not give a time of day. Treasury's fact sheet says the department issued the notice of proposed rulemaking on 22 October 2026, and that the notice does not itself implement the Comprehensive Outbound Investment National Security (COINS) Act. A final rule would set an effective date.

The proposed rule would update the Outbound Investment Security Program. It would require US persons to notify Treasury of certain transactions with covered foreign persons engaged in notifiable technologies, and prohibit certain other transactions with covered foreign persons engaged in prohibited technologies. The Federal Register text says the proposal lists the development of super intelligence systems as prohibited technology, and not as notifiable technology. It says the department proposes to define prohibited technology to include the development of any such system. A footnote says Executive Order 14434 of 29 September 2026 tells agencies to use "Super Intelligence" and "SI" in place of "Artificial Intelligence" and "AI" in certain documents.

The same notice says Title VIII of the Act, enacted 18 December 2025, adds Cuba, Iran, North Korea, Russia, and Venezuela under the regime of Nicolás Maduro Moros to the countries of concern, alongside the People's Republic of China including Hong Kong and Macau. The fact sheet says Venezuela does not meet that definition now, because the United States recognized Delcy Rodríguez as head of state on 5 March 2026 and her government is not the Maduro regime. The notice also says the Secretary has proposed to add biotechnology, beyond the technology areas named in the Act.

The Federal Register text says a civil penalty may be imposed in amounts equivalent to section 206(b) of the International Emergency Economic Powers Act. Those amounts are not to exceed the greater of $250,000, as that amount is adjusted under the Federal Civil Penalties Inflation Adjustment Act of 1990, or twice the amount of the transaction. The same text says the Secretary may compel the divestment of a covered national security transaction in a prohibited technology. The fact sheet says an exception from the notification requirement only would cover transactions that, in total over the preceding 12 months, do not exceed $50,000.

What it means for business: nothing in this notice is in force yet. If a final rule follows this text, some US-person investments tied to covered foreign persons that develop super intelligence systems would be prohibited, not merely notified. Comments are due 7 December 2026. This is a description of the proposal, not advice on a transaction.