Carole House, board member at Open Frontier, says U.S. leadership in digital innovation is about more than tech—it’s about defending democracy, protecting privacy, and keeping America at the center of global finance.
What do you see as the biggest risk if the U.S. falls behind on digital innovation?
Carole House: Falling behind in digital innovation risks underutilizing the extraordinary capacity of American industry and the innovative minds driving financial and technological progress. It could erode U.S. economic sovereignty and geopolitical influence, while allowing rival nations to establish alternative systems that may not respect democratic principles, privacy, or rule of law.
This could disadvantage U.S. interests, marginalize vulnerable populations, and fragment the international financial system. Responsible innovation, early guardrails, and ensuring U.S. centrality in global finance are critical to preserving both economic strength and the influence of democratic values.
How can the U.S. proactively lead globally on safe and responsible innovation rather than just reacting to threats?
Carole House: U.S. leadership relies on building trust as the foundation of innovation. The U.S. must set the system architecture and regulatory principles, establish secure and trustworthy tech infrastructure, protect consumers, and convene global coalitions while supporting private sector innovation.
Investing in research and development, academic expertise, and regulatory frameworks ensures innovation scales safely. Leadership means balancing efficiency with safeguards, maintaining openness and competition, and defending against adversaries exploiting the financial system. Proactive measures allow the U.S. to lead with both credibility and capability, shaping global standards rather than merely responding to external threats.
How do we prevent digital assets from becoming tools for adversaries while enabling American-led innovation?
Preventing misuse of digital assets requires designing systems from the outset with democratic principles in mind. Guardrails must ensure transparency, auditability, privacy protections, and prevent concentration of control. Technology, operations, and policy must work together to create a resilient system. Financial regulations should reinforce these guardrails while promoting innovation and equitable participation. By integrating responsible infrastructure design, secure governance, and protective policies early, the U.S. can enable innovation without compromising security. This approach safeguards citizens, supports financial inclusion, and ensures that adversaries cannot exploit the system for geopolitical or criminal purposes.
Can you discuss technological controls and policies that ensure digital assets advance democratic values globally?
Digital identity infrastructure is foundational for secure, trustworthy digital economies. Identity enables authentication, zero-trust frameworks, and protection against cybercrime. We need verifiable credentials at scale, privacy-enhancing technologies like zero-knowledge proofs, and careful balance between transparency and privacy.
Governance structures should ensure inclusivity, equitable access, and recourse mechanisms, while preventing exploitation by adversaries. And digital ledgers should provide privacy-enhancing transparency, not full anonymity, preserving oversight and accountability.
By integrating technology, policy, and operational guardrails, we can advance democratic values globally, enabling innovation that benefits all participants while protecting individuals and national security interests.