The Treasury Department of the United States is initiating a new programme that promotes awareness of the risks associated with investing in digital assets. According to the Treasury official, the move comes as the investment portfolio transforms from a specialised industry to mainstream investing, possibly attracting less skilled investors. The department’s “Financial Literacy Education Commission” is creating instructional materials to help the public understand how crypto assets work and how they differ from regular assets.
Nellie Liang, Treasury Undersecretary for Domestic Finance, informed sources that the target market is those with limited access to conventional financial services. She stated that we’re talking so much about investors and consumers buying crypto assets so we should also be aware of the complexities of how these assets work. Liang went on to say that increased education and awareness in this area “would be beneficial.”
Better education and financial literacy are obviously beneficial to the public since there has been criticism that regulators’ current focus on “protecting” consumers has resulted in the exclusion of underprivileged populations from crypto wealth-building prospects. The Securities and Exchange Commission (SEC) is among the 20 agencies that make up the new education division. The endeavour may reduce the authorities’ concerns about the dangers associated with cryptocurrency investment, as well as strengthen their aim to safeguard investors from sector fraud.
The Treasury Department looks to be taking a proactive approach to the issue, recognising that digital assets may offer additional benefits for cross-border payment or financial inclusion. Liang continued that we’re simply trying to increase awareness without attempting to stifle new technologies and creativity.
Leading crypto businesses have also expanded their lobbying on Capitol Hill in the last year, so the education push is reciprocal. Companies like Ripple Labs and Coinbase have increased their efforts to “teach” lawmakers about the sector and its underlying technology.