Crypto Innovation Takes Away From The US, Potentially Becomes A National Threat. Former cybersecurity director and co-author of President Joe Biden’s executive order on crypto, Carole House said Crypto innovation going overseas could pose a threat to US national security.
“Encouraging any of the actors in cryptocurrency and other financial markets to have a center outside the United States is also contrary to US national security goals,” House said, quoted from CoinDesk, Tuesday (21/3/2023).
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House added that it was important for cryptocurrencies and financial innovation to remain under the guidance of US regulators. House, who is chairman of the new US Commodity Futures Trading Commission (CFTC) Technology Advisory Committee, said his committee is trying to work out the practical realities of technological developments and their biggest risks.
Crypto Innovation Takes Away From The US, Potentially Becomes A National Threat. By gaining a better understanding of emerging crypto technologies, the committee may be able to provide the CFTC with more concrete recommendations on regulatory frameworks and policy guidelines.
“The US financial system. is really at the heart of so many pieces of US national security equipment and capability. Anything that has the potential to weaken the sector is of concern,” House said.
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Ahead of the committee’s first meeting, the group will discuss technology policy, legal implications regarding decentralized finance and artificial intelligence and cybersecurity for commodity markets including cryptocurrencies.
Previously, Ripple CEO Brad Garlinghouse said the SEC’s lawsuit against Ripple was an “attack” and “attacked” the crypto industry as a whole.
Crypto Innovation Takes Away From The US, Potentially Becomes A National Threat. Garlinghouse says the SEC’s approach to regulation through “enforcement” is not healthy for regulating the industry, and may make the US a less attractive location for crypto companies.
He also said the crypto industry had started to move outside of the US, considering that the US crypto regulatory process was still lagging behind other countries such as Australia, UK, Japan, Singapore and Switzerland.
