The U.S. Bureau of Industry and Security (BIS) has confirmed that it is drafting a proposal to tighten the so-called '50% rule.' According to a BIS official, 'we do indeed have a draft,' indicating that the agency plans to fill the current 'whack-a-mole' loophole that allows entities listed on the entity list to conduct business through a subsidiary that holds a majority of the shares. This move is aimed at closing the loophole, which has been exploited by some entities to circumvent the restrictions imposed by the entity list. The proposed changes are expected to have significant implications for entities that rely on the '50% rule' to operate in the global market. As the BIS continues to refine the draft proposal, stakeholders are advised to monitor the developments closely and prepare for potential changes to their business operations. The exact timing and details of the proposed changes are yet to be announced, but it is clear that the BIS is taking steps to strengthen the regulations governing entities on the entity list.