The Bill's Stated Purpose

The bill claims to "authorize the Secretary of Commerce to review and prohibit certain transactions between persons in the United States and foreign adversaries, and for other purposes."

When we analyze the transactions covered, we find:

4. COVERED TRANSACTION. —

1. IN GENERAL. — This term refers to transactions involving entities described in subparagraph (B), which includes:

1. a foreign adversary;
2. entities subject to foreign adversary jurisdiction; and
3. entities directed or controlled by persons noted in (A) or (B).

While this may appear straightforward, the definition of "holding an interest" is alarming. The Secretary’s regulations determine what constitutes a "covered transaction," which can include any current, past, or potential future transaction.

Broad Definitions and Implications

The legislation expands its reach to every commercial entity in the U.S., including:

5. CRITICAL INFRASTRUCTURE. — Defined as in section 1016(e) of the USA PATRIOT Act (42 U.S.C. 5195c(e)).

6. ENTITY. — Encompassing firms, government bodies, labor unions, partnerships, and more, whether based in the U.S. or abroad.

The consequence? The government could potentially ban any application—not only those from foreign companies like TikTok or Telegram—at the discretion of an unelected council.

Moreover, individuals could face fines or imprisonment for attempting to access banned websites or apps via a VPN.

Understanding "Foreign Interest"

The bill primarily targets apps and websites owned or controlled by foreign adversaries from nations like Iran, China, Russia, and Cuba. However, the definition of "holding" is expansive:

9. HOLDING. — This term includes:

1. equity interests,
2. stocks,
3. securities,
4. shares,
5. partnership interests,
6. interests in limited liability companies,
7. membership interests, and
8. any equivalent participation or rights.

This means that even a single share owned by someone from these countries could place every transaction of that entire company under the purview of this act.

Loss of Transparency

The act also removes the ability to scrutinize governmental actions regarding these transactions:

2. INAPPLICABILITY OF FOIA. — Information submitted to the Federal Government concerning a covered transaction is exempt from the Freedom of Information Act.

This lack of transparency raises serious concerns about the legality of these measures, potentially leading to a stifling of the free internet.

The Secretary's Authority

The Secretary can demand detailed information from any party involved in a transaction under review, which could be weaponized against individuals.

Additionally, the Secretary is empowered to conduct thorough investigations and require comprehensive disclosures regarding any transaction under scrutiny.

Expanded Presidential Powers

Under the Restrict Act, the President has the authority to label any entity as a threat to national security based purely on their judgment, allowing for the seizure of information and assets.

This broad language effectively grants the President unchecked power, far exceeding even the provisions of the PATRIOT Act.

Take Action Now

The Restrict Act is designed to ban TikTok, but its implications go far beyond that, as it allows the government to arrest individuals for using VPNs to access non-compliant sites.

This bill opens the floodgates for the government to impose severe penalties without due process, even targeting social media influencers deemed a security risk.

The Data Act that accompanies it further extends these powers, making it an unwelcoming environment for young entrepreneurs, particularly those from diverse backgrounds.

While national security is crucial, perhaps the government should also scrutinize homegrown tech giants like Twitter, Facebook, and Google, who are similarly profiting from user data.

Enough is enough. It's time to reclaim our freedom.

Contact your local representative today: http://www.house.gov/representatives/find-your-representative

Join the conversation on this pressing issue through my Medium subscription or follow my Substack for more insights.