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Treasury launches awareness program for risks in crypto investing.
Treasury’s Financial Literacy Education Commission will develop educational materials.
The new education division comprises 20 different agencies, including the SEC.
The US Treasury Department wants to educate consumers about the risks of investing in cryptocurrencies by launching an education program.
The executive department aims to promote crypto literacy among American households with limited access to mainstream financial services, Nellie Liang, Treasury undersecretary for domestic finance, told Reuters.
“We’re hearing more and more about investors and households who are purchasing crypto assets, and we recognize the complexity of how some of these assets operate. It felt like this is an area also where more education (and) more awareness could be helpful.”
The Treasury’s Financial Literacy Education Commission plans to craft educational resources. It will also create awareness on how digital assets like bitcoin and ethereum operate and how they differ from other traditional payment methods. It will also stress the complexities and risks of investing in crypto assets.
The new education arm comprises 20 different agencies, including the Securities and Exchange Commission (SEC), Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation.
Regulators Express Concern
There’s a storm brewing between the burgeoning crypto sector and regulators expressing concerns that crypto assets could present risks to the financial system.
Under Secretary Liang had recently stated her concerns on the growing demand for stablecoins like Tether, Binance USD, and DAI. In a Washington Post article, she emphasized that Congress must “act quickly” to help ensure that risks do not harm consumers and the broader economy.
SEC chair Gary Gensler had called the crypto industry the “wild west of finance” and is riddled with fraud, scams, and abuse. He said at the time,
“If we don’t address these issues, I worry a lot of people will be hurt,” Gensler said.”
Amid pouring concerns among regulators, Liang is conscious that the Treasury campaign would recognize possible benefits of cryptocurrencies, like improving cross-border payments and financial inclusion.
“We’re just trying to raise awareness without trying to stamp out new technology and new innovation,” Liang said.
What it Means for Crypto Regulation
The Treasury’s crypto education initiative comes in a timely fashion. The Biden administration is preparing to sign a crypto executive order for possible legislative action on crypto regulation.
The executive order will reportedly detail what government agencies, including the Treasury, need to do to create policies and regulatory frameworks on crypto assets.
The crypto order, coupled with federally-driven risk awareness education on crypto, is expected to finally give some clarity over the persistent crypto regulation debate.
It is also noteworthy that crypto adoption saw tremendous growth in 2021, with 16% of Americans now invested in the crypto asset class, according to Pew Research survey. It seems that the Treasury’s crypto education program is aiming to bolster further adoption in the coming years.
This article was originally posted on FX Empire
