It turns out that John Ratchliffe, head of the US National Intelligence Agency, wrote a letter to the Securities and Exchange Commission (SEC) regarding concerns that China’s dominance in digital currencies could put the United States at a disadvantage.
According to the Washington Examiner, John Ratcliffe wrote a letter to the head of the agency, Jay Clayton, in November to force the SEC to create rules that will make businesses in the US more competitive.
In this letter, Ratcliffe stated that more than half of the global cryptocurrency mining power is based in China and the national digital currency developed by China’s central bank, the People’s Bank of China. He further suggested that the intelligence chief briefing Clayton on the matter from top economic intelligence officials.
In the report, it is stated that Ratcliffe also attached a copy of a letter sent to Clayton by US Senator Tom Cotton in the summer, stating the need for clearer statement of the policy and official guidance on digital currencies.
Clayton recently announced that he would resign from his SEC post at the end of the year. The SEC Chairman’s term of office normally ended in the summer of 2021.
On the other hand, a senior intelligence official speaking to the Washington Examiner stated that the US has serious national security concerns over China’s control over Bitcoin and Ether.
Recently, some policy makers in the USA and crypto money companies, especially Ripple, have been troubled by China’s lead in digital currencies. Ripple’s co-founder Chris Larsen has said that the US could lose its position as the world’s financial leader in blockchain technologies, with China lagging behind China.
Due to strict legal regulations, Ripple is considering moving from the USA. The company recently opened a regional center in Dubai.