The United States Treasury Department has launched a new crypto education campaign to create awareness among the investing public about the potential risks associated with cryptocurrencies.
U.S. Treasury to Provide Crypto Education
The initiative will focus on those who have limited access to the mainstream financial services, as many of them invest in crypto assets without having enough knowledge about how crypto works.
The Treasury’s Financial Literacy Education Commission is tasked with providing crypto educational learning resources as well as organizing the outreach to teach them how cryptocurrency works and what makes it different from other digital assets.
“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,” Nellie Liang, the Treasury undercover for domestic finance, said in an interview.
In line with the increasing concerns among financial regulators that crypto assets could constitute risks to the financial system as they grow in popularity, the Treasury Department believes that creating more awareness could help combat such risks.
The Treasury’s education unit consists of 20 different agencies such as the Securities and Exchange Commission (SEC). Gary Gensler, the SEC chairman, referred to the crypto industry as the “wild west” of finance “rifled with fraud, scams and abuse.”
Biden Issues Executive Order on Crypto
Meanwhile, the crypto education campaign comes just a few days after U.S. President Joe Biden issued an executive order to all government agencies in the country asking them to develop policy recommendations centered on protecting U.S. investors, consumers and businesses engaging in the cryptocurrency industry.
To alleviate the risks posed by misuse of digital assets, crypto platforms, exchanges and intermediaries whose services may increase the risks of financial instability should be forced to comply with the financial watchdogs and regulatory standards that rule the market infrastructure and financial institutions with the traditional principle of “same business, same risks, same rules.”
The Biden administration also believes that creating responsible payment platforms would help reinforce the United States leadership in the global financial system as well as maintain its position as world leader.