Former Director of Cybersecurity and Secure Digital Innovation at the White House and co-author of President Joe Biden’s executive order on crypto, Carole House, has warned that if cryptocurrency and other financial markets move their “centers of gravity” outside of the United States, it could be a threat to national security.
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In an interview with CoinDesk TV’s “First Mover,” House said it is important for financial innovation and crypto to stay under the guidance of US regulators, as it not only allows for better enforcement against bad actors but also encourages innovation to occur in the US. House, who chairs the Commodity Futures Trading Commission’s new Technology Advisory Committee, also stated that the committee is examining emerging technologies to determine the greatest risks and to provide more concrete recommendations on regulatory frameworks and policy guidelines.
The Commodity Futures Trading Commission’s new Technology Advisory Committee will convene its first meeting on Wednesday to discuss the practical realities of emerging technologies and their potential impact on the US financial system’s national security tools and capabilities. The committee will also discuss technology policy, legal implications related to decentralized finance, artificial intelligence, and cybersecurity for commodity and derivatives markets. The committee aims to determine where the greatest risks lie and to provide concrete recommendations to the CFTC on regulatory frameworks and policy guidelines.
The potential threat to US national security posed by the loss of the cryptocurrency and financial markets to overseas jurisdictions is not to be underestimated. The US financial system is a crucial tool in the country’s national security arsenal, and the loss of control over it could have serious implications. The CFTC’s new Technology Advisory Committee’s work is, therefore, essential to ensuring that the US retains its position as a global leader in financial innovation, while also protecting its national security interests.
