WASHINGTON (October 27, 2026) — The Council for Innovation Promotion (C4IP) today raised concerns about potential unintended consequences for American biotechnology innovation under the U.S. Treasury Department’s proposed efforts to protect national security through restrictions on certain outbound investments.
The Comprehensive Outbound Investment National Security (COINS) Act, enacted as part of the Fiscal Year 2026 National Defense Authorization Act, seeks to prevent American investments and expertise from strengthening foreign adversaries. Treasury’s recently issued Notice of Proposed Rulemaking would extend investment restrictions to biotechnology, including certain pharmaceutical and life sciences activities.
C4IP is concerned that the proposal’s broad treatment of joint ventures and other investment arrangements could restrict transactions that enable American companies to acquire, license, and commercialize valuable biotechnology discoveries developed abroad.
Coke Morgan Stewart, President and CEO of C4IP, issued the following statement:
“We support Treasury’s efforts to protect sensitive American technologies and prevent investments that could threaten our national security. These are important objectives that deserve strong safeguards.
“However, the proposed restrictions could inadvertently prevent American companies from acquiring valuable intellectual property rights developed abroad, leaving promising innovations in the hands of foreign competitors. That could undermine both American competitiveness and national security.
“America’s innovation leadership is itself a national security asset. We urge Treasury to distinguish transactions that pose genuine security risks from those that bring valuable intellectual property into American hands. A carefully tailored approach can advance our national security objectives while preserving America’s leadership in innovation. We look forward to submitting comments on the proposed rule and working constructively with Treasury to achieve these shared goals.”
About the Council for Innovation Promotion: The Council for Innovation Promotion is a bipartisan coalition dedicated to promoting strong and effective intellectual property rights that drive innovation, boost economic competitiveness, and improve lives everywhere.