US Treasury Wants to Promote Crypto Literacy

As cryptocurrency becomes more and more mainstream, the U.S. Treasury says it wants to help educate consumers about the risks of investing in the digital assets.

As Reuters reported Tuesday (March 8) the Treasury’s Financial Literacy Education Commission plans to publish educational materials and organize outreach to tell the public how crypto assets work and how they differ from other payment methods.

Speaking to Reuters, Treasury Undersecretary Nellie Liang said people with limited access to mainstream financial services are one of the main groups the campaign hopes to reach.

“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.”

Treasury’s education unit consists of 20 agencies, including the Securities and Exchange Commission (SEC), whose chair, Gary Gensler, has called the crypto industry the “wild west” of finance, and an industry “rife with fraud, scams and abuse.”

Read more: Coinbase Sees Record Visits After Super Bowl Ad

Gensler is among many regulators who worry cryptocurrencies could present a risk to the financial system as they become more popular. About 14% of Americans own crypto, and the industry’s value passed $3 trillion in 2021, with cryptocurrency ads making their way to this year’s Super Bowl via companies like FTX, Coinbase and Crypto.com.

But despite the concern among regulators, Liang insists the Treasury campaign isn’t just about sounding alarm bells, noting her agency recognizes the possible benefits of cryptocurrencies, such as improving financial inclusion and cross-border payments.

“We’re just trying to raise awareness without trying to stamp out new technology and new innovation,” she said.

Learn more: Biden to Sign Executive Order Related to US Crypto Strategy, Report Says

President Joe Biden is expected this week to sign an executive order outlining a government cryptocurrency strategy.

The order will instruct federal agencies to look into potential regulatory charges, while also examining the impact digital assets could have on national security and the economy. It will also require federal agencies to report what they are doing in relation to cryptocurrency.