According to the former State Department official, Anja Manuel, if the United States is not able to maintain its dominance in terms of financial innovation and payments, it could affect its national security policy, specifically sanctions.
On April 21, Manuel participated in a discussion on Twitter Spaces with the CEO of Coinbase, Brian Armstrong, and other listeners. During the discussion, Manuel he pointed that the The United States is one of the world leaders in the payment sector, which allows them to apply sanctions to countries like Iran or North Korea. Manuel claimed that allowing the country to lead innovation under clear rules strengthened US national security, but China was outpacing the US in mobile payments in both sophistication and scope.
“While we are groping here and we don’t have a well-thought-out regulatory framework in the US, China is moving forward, many other people are moving forward,” Manuel said. “If Chinese payment solutions, for example, were to gain a foothold in the developing world, [las sanciones van a ser] much, much more difficult.”
Join us live from the Capital in 15 minutes for this twitter spaces on how we get crypto policy working in America https://t.co/QVkGSjXjhF pic.twitter.com/VswGlY9JSR
—Brian Armstrong (@brian_armstrong) April 21, 2023
The United States applies sanctions through the Treasury Department’s Office of Foreign Assets Control, which has announced several actions against Russian nationals and groups related to their involvement in the war against Ukraine – including sanctions on cryptocurrency wallets. The former State Department official said that sanctions generally worked “in a world of traditional banks” and “responsible” blockchain companies, but not when there were fintech companies available to individuals seeking to circumvent the restrictions.
Manuel added:
“Other sensible countries are getting their act together, from Singapore to the UK to the EU. This is not impossible, it just hasn’t happened in the US. In the US, regulation has been almost entirely by actions SEC enforcement actions.”
The Twitter Spaces debate was part of Coinbase’s Crypto435 campaign, aimed at promoting cryptocurrency-friendly policies and candidates in United States. Armstrong has reiterated calls for action among pro-crypto U.S. voters after the exchange received a notice from Wells in March — suggesting possible enforcement action by the Securities and Exchange Commission.
“Countries are not going to wait for the United States to get things right,” said Tomicah Tilleman, former senior adviser to two US Secretaries of State, on regulation. “Right now, there are 114 different governments that are in very advanced stages of researching their own central bank digital currencies. More than half of them are very far along in the process.”
Armstrong has been one of the most critical among top US digital asset exchange leaders stating that the sec needs provide “clear rules to regulate cryptocurrencies.” Amid the Impending Wells Notice, Coinbase CEO said who met with SEC officials and US lawmakers this week to push for regulatory clarity.
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