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US Might Hinder Blockchain Innovation with Over-Regulation

Former White House cybersecurity director Carole House said that the US is implementing “overly harsh” regulations on crypto.

US regulations are hindering blockchain innovation.
Creator: 24K-Production Credit: Getty Images

Former White House cybersecurity director Carole House warned that Blockchain innovation in the US might suffer from “overly harsh” regulations on crypto. House spoke at a panel discussion at the Korea Blockchain Week in Seoul on September 5, where she criticized the US’s current take on crypto regulations.


It's not the tech, it’s the people


House acknowledged that high-profile fraud cases in the blockchain industry draw a certain picture of the whole concept that appears to be illicit and dangerous.


However, despite the underlying sense that it is the technology’s fault, House stressed that it is “a fault of people and businesses.” After all, Blockchain is simply a high-tech tool, and it is shaped in the hands of people who use it.


US is trying to drive blockchain innovation, competition


House also added she saw “great potential” in blockchain technology, especially in the areas of identity verification and supply chain transparency. Use cases in such fields are an entirely different concept than blockchain’s implications in finance. Therefore, she called on the lawmakers to treat these two cases separately.


According to House, the US government is failing to do so. She argued that the US government is trying to drive competition in blockchain technology with the steps it is taking. House said:


“Enforcement actions actually take many years to come to fruition. So a lot of this effort that you’re seeing now culminating in enforcement actions is because of something that’s been a priority for many years,”

However, even though she doesn’t think that the US is trying to be oppressive with its regulations, the fact that it is failing to separate the financial use cases from the other ones is affecting the growth and innovation of Blockchain in the country.


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