THE FOREIGN SERVICE JOURNAL | DECEMBER 2024 33 Houston’s experience and expertise in digital assets go back several years. He played a critical role in the wake of President Joe Biden’s 2022 executive order on the responsible development of digital assets. Tasked to represent the State Department in an interagency working group to develop a national research and development agenda, he took a methodical and inclusive approach. Houston analyzed three years’ worth of cables—more than 600 documents—on digital assets, indexing them into a searchable database. This initiative distilled important insights and provided a valuable tool for diplomats across the department to quickly access relevant country- and topic-specific information on DA. Houston’s analysis confirmed what he suspected: The department’s approach to digital assets, particularly in the context of U.S. foreign policy, lacked the necessary scope to fully address the technological and human rights implications of these emerging tools. The interagency discussions had primarily focused on economic and financial aspects, often neglecting the broader policy issues related to distributed ledger technology and its potential impact on maintaining an open, secure, and reliable internet. Recognizing this gap, Houston sought to build consensus at the working level, initially proposing two innovative ideas to the Secretary’s Policy Planning Staff. His first idea focused on experiential learning through creation of a “decentralized autonomous organization,” which led to a successful interagency workshop exploring this concept. His second proposal emphasized the need for adequate human resources to manage the nuances of the digital assets portfolio. Though his personnel-focused idea gained only nominal interest, his persistence in pushing for broader engagement continued. Ultimately, to drive the urgent conversation he envisioned, Houston turned to the department’s formal Dissent Channel. In a 13-page cable, he presented both substantive and procedural dissent on the department’s handling of the digital assets portfolio. His detailed analysis raised critical concerns about the Department of the Treasury’s position on decentralized finance and advocated for a recalibration of the department’s approach to digital assets, placing a greater emphasis on human rights and technological factors. Houston’s dissent sparked significant action at senior levels. His efforts led to a deputy assistant secretary–level meeting, where he presented his thesis and received support on several important points. The Secretary of State and other seventh-floor principals concurred with several of his findings, setting the stage for important policy shifts. These shifts include reorienting the department’s digital assets portfolio toward a more affirmative vision that integrates human rights and technological considerations alongside cyberspace efforts. The Secretary’s office also tasked the under secretary for economic growth, energy, and environment (E) with producing a topline policy framework by mid-2024 to guide the department’s work on digital assets. This effort is supported by regular assistant secretary–level meetings on the subject. Additional anticipated changes include increased engagement with civil society and industry, coordination with the Foreign Service Institute on potential training options, and consideration for creating or reorganizing positions dedicated more directly to the digital assets portfolio. This award affirms the State Department’s commitment to one of America’s finest traditions: dissent. It also helps galvanize support for the ongoing efforts underway to implement and consider the recommendations of the dissent cable itself. —DAVID HOUSTON David Houston greets President Barack Obama while on deployment in Afghanistan.
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