In a bold move, US Space Force Major, Jason Lowery has sent an open letter to the Department of Defense’s Defense Innovation Board (DIB), urging them to consider the potential of Bitcoin as a strategic asset for national security and defense.
The letter, which was published on Medium, argues that Bitcoin is not only a revolutionary technology that can enhance the resilience, efficiency and transparency of the US military, but also a powerful tool to counter the threats posed by adversaries such as China, Russia and Iran.
Major Lowery, who is a space operations officer and a PhD candidate in engineering management at the Air Force Institute of Technology, writes that Bitcoin is “the most significant innovation in the history of money and accounting” and that it has “profound implications for the future of warfare”.
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He explains that Bitcoin is a decentralized, peer-to-peer network that enables anyone to transact value without intermediaries, censorship or fraud. He also highlights some of the unique features of Bitcoin, such as its limited supply, its immutability, its transparency and its programmability.
According to Major Lowery, Bitcoin can offer several benefits to the US military, such as:
Reducing the reliance on legacy financial systems that are vulnerable to cyberattacks, corruption and manipulation. Enhancing the operational security and agility of the troops by enabling fast and secure payments across borders and domains. Improving the accountability and auditability of the defense budget by creating a public ledger of all transactions.
Fostering innovation and collaboration among allies and partners by creating a common platform for interoperability and trust. Deterring and disrupting the malicious activities of adversaries by undermining their ability to finance their operations, launder money and evade sanctions.
Major Lowery also warns that ignoring or dismissing Bitcoin could have serious consequences for the US national security and defense. He cites several examples of how adversaries are already exploiting the advantages of Bitcoin, such as:
China’s dominance in Bitcoin mining, which gives it control over a large portion of the network’s computing power and influence over its governance. Russia’s use of Bitcoin to fund its cyberwarfare campaigns, such as the 2016 election interference and the SolarWinds hack.
Iran’s adoption of Bitcoin to circumvent US sanctions and to support its nuclear and ballistic missile programs. North Korea’s theft of Bitcoin from exchanges and wallets to finance its weapons of mass destruction.
Major Lowery concludes his letter by urging the DIB to take action and to embrace Bitcoin as a strategic asset for national security and defense. He proposes several recommendations, such as:
Establishing a Bitcoin Innovation Center within the DOD to research, develop and test Bitcoin-related technologies and applications. Creating a Bitcoin Reserve Fund within the DOD to acquire and hold Bitcoin as a hedge against inflation, currency devaluation and geopolitical instability.
Developing a Bitcoin Education Program within the DOD to train and educate the military personnel on the fundamentals, benefits and risks of Bitcoin. Forming a Bitcoin Alliance with like-minded allies and partners to coordinate policies, standards and best practices regarding Bitcoin.
Major Lowery’s letter is a remarkable example of how some visionary leaders within the US military are recognizing the potential of Bitcoin as a game-changer for national security and defense. It is also a wake-up call for the DOD and the DIB to take Bitcoin seriously and to act swiftly before it is too late.
US Judge Threatens SEC For False Arguments In Crypto Firms Case
A US judge has issued a stern warning to the Securities and Exchange Commission (SEC) for making false claims in its lawsuit against Ripple, a cryptocurrency firm. The SEC had accused Ripple of violating securities laws by selling unregistered tokens, called XRP, to investors. The judge, however, found that the SEC had failed to provide any evidence to support its allegations and had misrepresented the facts of the case.
The judge said that the SEC’s conduct was “unacceptable” and “unprofessional” and that it had wasted the court’s time and resources. He said that he would impose sanctions on the SEC if it continued to make false or misleading arguments in the future. He also urged the SEC to reconsider its approach to regulating the cryptocurrency industry and to work with the stakeholders to develop a clear and consistent framework.
SEC Spot Bitcoin?ETF potential approval window is between January 5th – 10th, 2024.
The cryptocurrency community is eagerly awaiting the decision of the US Securities and Exchange Commission (SEC) on the proposed Bitcoin exchange-traded fund (ETF) from VanEck. The SEC has postponed its ruling several times, but the final deadline is approaching fast. According to the latest notice, the SEC must approve or reject the Bitcoin ETF by January 10th, 2024, although some analysts believe that the decision could come as early as January 5th.
A Bitcoin ETF would allow investors to buy and sell shares of a fund that tracks the price of Bitcoin, without having to deal with the complexities and risks of storing and transferring the digital asset themselves. This would make Bitcoin more accessible and attractive to mainstream investors, especially institutional ones, who are looking for exposure to the growing crypto market. A Bitcoin ETF could also boost the liquidity and legitimacy of Bitcoin, as well as reduce its volatility and price manipulation.
The SEC has been reluctant to approve a Bitcoin ETF so far, citing concerns over investor protection, market integrity, and regulatory oversight. The SEC has rejected several Bitcoin ETF proposals in the past, most notably the ones from the Winklevoss twins in 2017 and 2018. However, some experts believe that the chances of approval are higher this time, as the crypto industry has matured and improved its standards and practices. Moreover, the SEC has a new chairman, Gary Gensler, who is considered to be more crypto-friendly than his predecessor.
The VanEck Bitcoin ETF is not the only one in the pipeline. There are several other contenders, such as Valkyrie, WisdomTree, and NYDIG, who have also filed their applications with the SEC. However, VanEck has a slight edge over the others, as it was the first one to submit its proposal in December 2020, and it has partnered with CBOE BZX Exchange, which has a successful track record of launching innovative products. VanEck also has experience in managing ETFs for other asset classes, such as gold and emerging markets.
If the SEC approves the VanEck Bitcoin ETF, it would be a historic moment for the crypto industry, as it would mark the first time that a major US regulator has given its green light to a Bitcoin-based financial product. This could trigger a wave of adoption and innovation in the crypto space, as well as a surge in the price of Bitcoin. On the other hand, if the SEC rejects the proposal, it would be a setback for the crypto community, as it would signal that the regulator is still not convinced by the merits and potential of Bitcoin. This could dampen the enthusiasm and confidence of investors, as well as depress the price of Bitcoin.
Ripple, which had denied any wrongdoing, welcomed the judge’s ruling and said that it was a victory for innovation and fair competition. Ripple said that it had always complied with the law and that it had cooperated with the SEC throughout the investigation. Ripple said that it hoped that the SEC would drop the case and allow it to continue its mission of providing decentralized financial services to its customers.