A "covered transaction" is defined as any transaction where a "covered entity", which is to say a "foreign adversary", has any interest. A "covered holding" li

A "covered transaction" is defined as any transaction where a "covered entity", which is to say a "foreign adversary", has any interest. A "covered holding" likewise concerns any holdings held by a "foreign adversary", and also holdings "the structure of which is designed or intended to evade or circumvent the application of this Act". A fuller citation of section 3 is as follows: >to address any risk arising from any covered transaction by any person, or with respect to any property, subject to the jurisdiction of the United States that the Secretary determines— >(1) poses an undue or unacceptable risk of— >(2) otherwise poses an undue or unacceptable risk to the national security of the United States or the safety of United States persons. That narrows the scope of this bill and the Secretary's powers to holdings and transactions concerning foreign adversaries, initiated by any person or with respect to property, which have more than 1 million active users or units sold in a given 365 day period, of which might pose unacceptable risks to the United States and Americans. From the perspective of the government's duty to "insure domestic Tranquility" and "promote the general Welfare", this all sounds very reasonable to me. The key thing you seem to be missing is this is talking about foreign adversaries, not foreign entities. IANAL, but as legalese goes this bill is actually pretty easy to read if one has a solid understanding of English.