U.S. Treasury Proposes Expanding Outbound Investment Rules to New Technologies
The U.S. Treasury proposes expanding outbound investment controls to more industries and countries.
Why it matters: Corporate counsel and compliance teams must monitor these changes to manage risks in global investment law and ensure adherence to evolving national security regulations.
- The U.S. Treasury issued a Notice of Proposed Rulemaking on October 22, 2026, aiming to expand the Outbound Investment Security Program (OISP).
- New industries covered include hypersonic systems, advanced aerospace, certain biotechnologies, semiconductors, AI ('super intelligence'), and quantum computing.
- Russia, Iran, Cuba, and North Korea are added to the list of 'countries of concern' under the OISP.
- Public comments on the proposal close on December 7, 2026, with final rules expected by March 13, 2027.
On October 22, 2026, the U.S. Department of the Treasury released a Notice of Proposed Rulemaking (NPRM) to significantly broaden the scope of the Outbound Investment Security Program (OISP), enacted under the Comprehensive Outbound Investment National Security (COINS) Act of 2025. The proposal targets strategic outbound investments that could bolster the military or surveillance capabilities of foreign adversaries.
The new NPRM expands the list of controlled technologies to include hypersonic and advanced aerospace systems, certain biotechnologies, semiconductors, artificial intelligence (termed 'super intelligence'), and quantum computing technologies. This marks a shift to address emerging fields critical to national security.
In addition, the Treasury proposes designating Russia, Iran, Cuba, and North Korea as 'countries of concern' under the OISP. As a result, U.S. persons would face prohibitions on specific transactions involving foreign parties developing these controlled technologies linked to those countries.
"Restricting certain U.S. outbound investments into dual-use strategic technologies that benefit a foreign adversary's military modernization efforts, surveillance states, and human rights abuses is necessary to prevent harm to U.S. national security and foreign policy interests," the Treasury stated in announcing the NPRM.
The NPRM includes a public comment period ending December 7, 2026. After reviewing feedback, the Treasury expects to issue final regulations by March 13, 2027. Corporate legal and compliance teams must monitor these developments closely, as the new rules will expand reporting obligations and potentially restrict more outbound investment activities in sensitive sectors.
By the numbers:
- December 7, 2026 — end of public comment period on NPRM
- March 13, 2027 — anticipated date for final OISP regulations
What's next: Public comments close December 7; final rules expected March 13, 2027.