US Treasury seeks public opinion on digital asset risks

In an effort to prepare a report for President Joe Biden on the significance of developments like cryptocurrencies, the U.S. On Tuesday, Treasury stated that it was seeking feedback on the dangers and opportunities posed by digital assets.

The formal probe was based on an executive order Biden made in March instructing government institutions to look into cryptocurrencies and other digital asset products, such as central bank digital currencies.

Nellie Liang, the Treasury’s Under Secretary for Domestic Finance, stated in a statement that “for consumers, digital assets may bring both possible benefits, such as speedier payments, and potential concerns, including risks related to frauds and scams.”

Despite worries from regulators and some policymakers that the sector lacks adequate oversight, transparency, and consumer protections, the crypto market, including bitcoin and other products, has expanded in popularity quickly in recent years.

The incidents in the cryptocurrency market has seen a number of well-known companies and tokens collapse or prevent customers from making withdrawals in an effort to regain stability.

The Treasury is looking for information on a variety of topics, such as how firms are using cryptocurrencies, potential weaknesses in consumer protection, and potential advantages or hazards of increased bitcoin use for the nation’s poorest residents.

The department polls the public on issues like the hazards of illegal financing, the regulation and enforcement of anti-money-laundering measures, and central bank digital currencies (CBDCs).

As a follow-up to President Joe Biden’s comprehensive crypto executive order from March, the White House announced last Monday what it dubbed the “first-ever complete framework for responsible development of digital assets,” which included suggestions from several government organizations.

The Terra-LUNA meltdown caused a number of liquidations and bankruptcies in the cryptocurrency sector, leading regulators throughout the world to become more stringent in how they handle digital assets.

While Singapore, India, and Thailand are rapidly strengthening their oversight to boost investor safety, Australia is relying on “token mapping” to detect regulatory vulnerabilities.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing