National security experts highlight the potential of blockchain technology and digital assets to enhance U.S. national security. They emphasize the need for the U.S. to establish a regulatory framework that allows these technologies to thrive domestically. This could channel a significant portion of the global economy into U.S. regulatory systems, enhancing economic growth and the strength of the U.S. dollar. As other nations, including adversaries, quickly adopt digital assets, the U.S. risks falling behind without appropriate market structures. Blockchain can enhance traceability and combat illicit financial activities, providing law enforcement with tools to track transactions on a public ledger. Despite misconceptions around anonymity, blockchain transactions offer a level of traceability unmatched by cash-based methods. Additionally, the technology allows for freezing or seizing assets linked to illegal activities. By investing in and regulating these technologies, the U.S. can bolster its national security and economic position for the future.

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