A report claims that the US Director of National Intelligence (DNI) John Ratcliffe has contacted SEC Chairman Jay Clayton regarding China’s influence in the crypto market including mining.
According to the Washington Examiner, the DNI is worried that China has too much control when it comes to crypto. Reportedly, a senior intelligence official told the publication the following:
“There are serious national security concerns about China’s control over Bitcoin and Ether … The president’s recent executive order made abundantly clear the threat posed by securities investments that finance Communist Chinese military companies. Digital currency controlled by the CCP could certainly fall into that category, but the bottom line is that we cannot allow China to dominate the technologies and innovations that are going to decide who runs the world for decades to come — from artificial intelligence to digital currency, and everything in between.”
The same report pointed to recent tweets by Ripple’s General Counsel – commenting on China’s influence in the crypto markets:
The data doesn’t lie. Vast majority of BTC’s network / infrastructure – chips, mining pools, software – are all located in China or created by Chinese companies. This is not decentralization. (1/3) https://t.co/OBeMEKnuSn
— Stuart Alderoty (@s_alderoty) November 19, 2020
The relationship between the Trump administration and China has been fractious at best. In fact, China is frequently criticized by the current President regarding an ongoing trade dispute. Some people anticipate that once the Biden administration moves into power the rhetoric directed at China may be toned down as public officials change policy direction.
While the DNI may have sent a letter to the SEC regarding their concerns pertaining to crypto, expect little action to take place as the current Chairman has already announced his departure from the agency at the end of the year.