US Treasury Invites Public Opinions on Digital Assets Framework

The US Department of the Treasury invited public opinions on Tuesday on the potential risks and benefits of cryptocurrencies based on President Joe Biden’s executive order in March.

The Treasury stated that it is asking for input from the public that will help the administration in reporting to President Jow Biden on the possible impacts of digital assets on the payment infrastructures and financial markets.

Nellie Liang, Under Secretary of the Treasury for Domestic Finance, commented about the development: “For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams. The Treasury Department is seeking to benefit from the American people's and market participants' expertise by soliciting public comment as we engage in this important work.”

The request for public comment was launched on the Federal Register last Friday, July 8, but the Treasury formally announced it on Tuesday, July 12.

The Treasury expects the public to submit their comments by August 8^th. The comments are just what people think or view could be the impact of mass adoption of cryptocurrencies, both for retail and institutional investors, and the potential effect of introducing new digital asset products and services. The agency also asked US citizens to weigh their thoughts on potential risks, such as losing private keys, and the authenticity of digital assets, including NFTs, among others.

The Treasury also noted concern that digital assets can pose risks to the underserved and vulnerable communities if exposed to such financial products with proper awareness: “The rise in use of digital assets, and differences across communities, may also present a disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses, and to put in place protections as a part of efforts to expand access to safe and affordable financial services experienced by more vulnerable populations.”

As reported by Blockchain.News, in March, U.S. President Joe Biden signed an executive order calling the federal government to examine the benefits and risks of cryptocurrencies.

Biden’s executive order directed the Treasury Department to take the lead among other government agencies in developing regulations and oversight aimed at addressing both systemic and consumer risks around digital assets.