March 11, 2022
By Sharan Kaur Phillora
The US Treasury has announced an initiative to raise awareness of the risks of investing in cryptocurrencies as digital assets move from the periphery of the financial system to the mainstream, top executives said.
Here’s what we know:
- The Treasury’s Financial Literacy Board of Education is responsible for creating educational materials and organizing outreach to showcase how crypto assets work and how they differ from other payment methods.
- Nelly Liang, Deputy Secretary of State for Financial Services at the Treasury said, “We hear more and more about investors and households buying crypto assets, and we are aware of the complexity of how some of these assets work.”
- This initiative comes in response to growing concerns among regulators that crypto-assets can pose risks to the financial system they become more popular.
- Gary Gensler, chairman of the Securities and Exchange Commission, called the crypto industry the “wild west” of finance “full of fraud, fraud, and abuse” last year. The Biden administration and many lawmakers believe that digital assets require a regulatory framework, but have not yet agreed.
- On the other hand, cryptocurrency exchanges like Crypto.com and FTX are driving mainstream recruitment in flashy marketing campaigns featuring celebrities and athletes, including this year’s Super Bowl.
- While cryptocurrencies are risky, the Treasury also recognizes that it can offer benefits such as improved cross-border payments and stronger financial inclusion.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.