Those who came before us made certain that this country rode the first waves of the industrial revolution, the first waves of modern invention, and the first wave of nuclear power, and this generation does not intend to founder in the backwash of the coming age of space. We mean to be a part of it—we mean to lead it.”
That was President Kennedy more than a half-century ago. Even then, he understood better than most that America’s place in the world was bound up with our determination to be at the cutting edge of progress. We were a beacon of hope because the world knew that we would use our technological prowess to expand the rule of law and the basic human rights of all people. America’s promise was to ensure that breakthroughs would be used for the good of humanity.
Today, that same spirit still animates certain elements of progressive thinking. My fellow Democrats aren’t trying to smother the emerging industry being born from artificial intelligence—they’re trying to establish wise and fair rules that ensure both that its deployed safely and that it benefits everyone, and not just the very well off. They’re refusing to cede the advanced semiconductor industry to businesses overseas—helping instead to induce the industry to construct “fabs” domestically in places like my home state of Ohio. On a whole range of issues, Democrats are determined to keep America at the cutting edge.
But when it comes to blockchain, namely the new technology promising to power a new, secure, decentralized, and transparent set of applications across a whole range of industries, many Democrats seem to have lost sight of Kennedy’s admonition. Having convinced themselves that various misuses of blockchain obviate its underlying value, Sen. Elizabeth Warren and her allies seem more interested in smothering innovation than harnessing its potential for the public benefit. While their concerns are understandable, their approach is fundamentally misguided.
By some measure, this challenge is less about this one technology than it is about the proper role government should play in shaping innovation. Blockchain, like nuclear fission and jet propulsion and satellite reconnaissance, and, yes, artificial intelligence, can be used for nefarious purposes. But that shouldn’t prompt Washington to seek to smother its development, or drive it offshore. What we need to do, instead, is develop a proactive approach to nurturing its evolution and shaping its impact. And that begins by dispelling what is the fuel for public suspicions—namely that crypto and blockchain comprise a hidden world of dark, mysterious, and dangerous activity.
It’s easy to understand why ordinary people worry about new technologies like AI and blockchain. Those of us who are of a certain age all saw Terminator when we were (probably too) young. The word “crypto” seems to connote that systems like Bitcoin or Ethereum are born where monks were buried in the Middle Ages.
Worse, the criminal fraud perpetrated by Samuel Bankman-Fried burnished a notion that the industry is inherently corrupt. Today, many have reason to suppose that terrorist organizations like Hamas are using blockchain to launder funding in ways that responsible authorities can’t track.
