US Treasury launches educational cryptocurrency initiative that focuses on risks involved

The US Treasury department is launching an initiative that seeks to educate and inform individuals about cryptocurrencies, focusing on the risks involved when making investments into digital currencies. 

Following President Joe Biden’s executive order on government oversight of cryptocurrency, the Treasury’s Financial Literacy Education Commission has announced plans to create an educational unit that will include 20 different agencies, including the US Securities and Exchange Commission (SEC). 

Nellie Liang, Treasury undersecretary for domestic finance, noted in an interview:

“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,” Liang said. 

"It felt like this is an area also where more education (and) more awareness could be helpful."

Under Biden’s recent executive order, Biden has instructed the Treasury department and other government agencies to assess the impact of cryptocurrency on financial stability. 

In addition to assessing the impact of cryptocurrencies on US national security, the executive order was also accompanied by the announcement that the US government would be looking into the impact of a central bank digital currency (CBDC).

It is reported that the news of the US government’s executive order was unwittingly revealed earlier than anticipated by Janet Yellen in an interview, before it was followed up by a government released fact sheet. 

“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts,” she noted.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.