To avoid danger, the US needs to lead in cryptocurrencies and blockchain

“Those before us rode this country on the first wave of the industrial revolution, the first wave of modern invention, the first wave of atomic energy, and convinced this generation that it was not going to collapse in the backwash of the coming era. “We are meant to be part of the universe, and we are meant to lead it.” ”

That was President Kennedy more than half a century ago. Yet he understood better than anyone that America’s place in the world is tied to our determination to be at the forefront of progress. We were a beacon of hope because the world knew we could use our technological capabilities to expand the rule of law and fundamental human rights for all people. America’s promise was to ensure that breakthroughs were used for the benefit of humanity.

Today, that same spirit animates certain elements of progressive thinking. My fellow Democrats are not trying to stifle the emerging industries that will emerge from artificial intelligence. They are trying to establish sensible and fair rules to ensure that artificial intelligence is deployed safely and benefits everyone, not just the wealthy. They refuse to cede the advanced semiconductor industry to foreign companies, and instead work together to induce the industry to build “factories” domestically, like in my home state of Ohio. ing. On every issue, Democrats are determined to keep America on the cutting edge.

But when it comes to blockchain, a new technology that promises to power a new set of secure, decentralized and transparent applications across all industries, many Democrats seem to have lost sight of Kennedy’s advice. . Sen. Elizabeth Warren and her allies believe that blockchain’s various misuses are eroding its fundamental value, and are committed to harnessing its potential for the public good. They seem more interested in blocking innovation than in doing so. I understand their concerns, but their approach is fundamentally flawed.

In some ways, this challenge is not about this one technology, but about the appropriate role that governments should play in shaping innovation. Blockchain, like nuclear fission, jet propulsion, satellite reconnaissance, and, yes, artificial intelligence, can be used for any illegal purpose; But that doesn’t mean Washington should try to block its development or push it overseas. What we need to do instead is develop proactive approaches to fostering its evolution and shaping its impact. And that starts by dispelling what fuels public suspicion: that cryptocurrencies and blockchain constitute a hidden world of dark, mysterious, and dangerous activity.

It’s easy to see why the average person is concerned about new technologies like AI and blockchain.All of us of a certain age have seen it. terminator When we were (probably) younger. The word “crypto” seems to imply that systems like Bitcoin and Ethereum were born in the burial places of medieval monks.

To make matters worse, the criminal fraud committed by Samuel Bankman Freed further illuminated the notion that the industry was inherently corrupt. Today, many believe that terrorist organizations like Hamas are using blockchain to launder money in a way that cannot be traced by responsible authorities.

However, the truth is quite the opposite. Far from being hidden, fundraising done using blockchain is completely decentralized, secure and transparent. In fact, this is the nature of blockchain. Transactions conducted through this new medium cannot be performed without intermediaries, as the technology itself creates a separate ledger that can be tracked forever. It is much easier to smuggle a bag of cash from the sale of stolen art than it is to send money via blockchain.

Even better, blockchain can also be used to solve all kinds of other problems, just like AI and nuclear physics. Instead of big tech companies controlling and selling our personal data, this new technology will allow consumers to sell their personal data directly or choose not to sell it at all.

In short, these innovations can, If handled properly, it would return power to a people who have felt powerless for decades. But to get there, we need a clear, open and understandable regulatory regime. If blockchain is to serve the greater good, it cannot be left to the perils of the Wild West. The crazy thing is that blockchain’s great advocates recognize this. ask To be regulated.

Blockchain believers recognize that everyone would benefit if Washington establishes clear rules of the road, and they have challenged Congress and federal regulators to threaten to hinder future growth and innovation. It calls for eliminating ambiguity. But to date, Washington has not responded.

Fortunately, Congress is currently working to create the kind of regulatory regime that will do just that. The bill is designed to prevent cryptocurrencies from being forced out of countries where U.S. regulators are unable to protect citizens from those who would misuse them. The bill, known as “Fit 21,” authored by some of my former colleagues, would clarify which of the many federal financial institutions would oversee blockchain applications in the financial world, and would It establishes disclosure requirements and sets necessary guidelines to protect against fraud. Maintain a secure secondary market for digital goods. A group of young, bright progressives, including California Congressman Ro Khanna, are leading the charge on this issue. They have aligned themselves with JFK and the old wing of the Democratic Party. However, many of their progressive peers have not yet seen the light.

Today, Democrats tasked with confronting the dangers and opportunities of new technologies often feel faced with a false choice: They feel they must either let evolution go unnoticed, as many free-market fundamentalists often call for, or try to stifle innovation altogether, as Senator Warren and her allies want to do with blockchain.

President Kennedy made clear the existence of a centrist.

We can maximize the benefits of blockchain, prevent adversaries from developing it offshore, and protect our citizens from misuse. However, this requires a clear and transparent regulatory regime and continued monitoring of its development.

Fit 21 will enable technologies as potentially transformative as AI to grow safely here in the United States. After all, here is another opportunity for America to take the lead. I just hope my fellow Democrats are on the right side of history. President Kennedy would want to do the same.

Tim Ryan is a member of the Coinbase Global Advisory Council and co-chair of the Blockchain Innovation Project. He is a senior adviser to the Progressive Policy Institute’s Campaign for Working Americans.

The views expressed in this article are the author’s own.