Experts and industry leaders are concerned that China is leaving the United States behind in the race for digital currencies. The SEC’s arrogant approach has hurt US companies, giving China an edge.
U.S. Director of National Intelligence (DNI) John Ratcliffe sent a letter to the president of the U.S. Securities and Exchange Commission (SEC) expressing concerns about the regulatory agency’s authoritarian handling of cryptomorphs.
Ratcliffe questioned the influence of the Chinese Communist Party on digital currencies in the world, and suggested that the SEC had given China advantages, putting the country’s security at risk.
The DNI serves as director of the U.S. intelligence service, overseeing the implementation of national intelligence programs, and acting as the chief advisor to the President, the National Security Council, and the Internal Security Council. The president has the autonomy to appoint the NID with the consent of the Senate.
SEC has harmed crypto companies for lack of clarity in regulation and tyrannical stance
Ratcliffe cited China’s control over cryptomime mining, as well as the advancement of the country’s digital currency, which has the potential to make life difficult for US companies.
Trump’s chief of intelligence asked the SEC to implement rules to make life easier for cryptomime companies in the United States so they can compete against those based and controlled by China.
The pressure on the SEC began after Senator Tom Cotton (R-AR) alerted Ratcliffe:
„The continued lack of regulatory clarity not only undermines digital assets developed in the US, but also puts US national and economic security at serious risk.
As recently as 2018, a Republican senator sent a letter to the SEC president stating that the agency „needed to develop a clearer policy mix and formal guidance from the commission on digital currencies to ensure that US companies had a chance to lead.
The SEC ignored and made life difficult for several companies. At the same time, China developed a digital bank currency and dominated bitcoin mining in the world.
„There are serious national security concerns about China’s control over Bitcoin Millionaire and Ether,“ an intelligence officer said.
„We cannot allow China to master the technologies and innovations that will decide who governs the world in the coming decades – from artificial intelligence to digital currency and everything else.
Will the US Securities and Exchange Commission help the crypto market?
Better late than never. Everything suggests that a turnaround could happen at the SEC, which has been very confrontational and hostile to the cryptomime market for the last 3 years.
It also suggests that cryptomorphs are now seen as a priority in the competition of the major powers, something that has been true since at least 2014, when London won the crown of financial capital of the world.
Much has changed since then, and there is a race to the digital industrial revolution. American private companies are one of the most advanced in the areas of artificial intelligence, blockchain and crypto, but the SEC has imposed measures that have prevented innovation in the market, giving advantages to other countries like China.
A common example is the ETF bitcoin which has not been granted by the regulatory agency which relies on centuries-old laws to apply them in a digital age.
This has created a bureaucratic, rigorous, and confusing regulatory environment, which has generated much anger in entrepreneurs and companies that have accused the SEC of acting as a guardian of monopolies.
Trump’s mistake in responding to these frustrations may have caused his election defeat. Silicon Valley chose Biden after his calls to the SEC in 2018 went in one ear and out in another.
It is not yet clear what approach Biden will take, but most analysts expect reforms at the SEC or at least some new energy to address the challenges and opportunities of the new industrial revolution driven by bitcoin technology.
An ETF bitcoin seems inevitable, especially since even the government’s „spy“ is frustrated with the SEC approach. They think it could hurt the United States because it gives China a technological advantage in crypto and blockchain.
Beijing led the race for the money of the future under the Trump government, the same government that also lost to Chinese telecommunications giant Huawei, which now dominates almost every 5G technology market in the world.