Treasury Department Seeks Public Comment on Crypto Risks

The U.S. Department of Treasury is asking for public comment on any risks that digital assets pose in terms of illicit finance and national security.

This Request for Comment (RFC) will be open through Nov. 3. It follows President Joe Biden’s executive order, “Ensuring Responsible Development of Digital Assets” which was issued in March and the Treasury Department’s Illicit Finance Action Plan that was released last week, the Treasury Department said Monday (Sept. 19) in a press release.

“Without appropriate controls and enforcement of existing laws, digital assets can pose a significant risk to national security by facilitating illicit finance, such as money laundering, cybercrime and terrorist actions,” U.S. Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said in the release. “As we work to implement the Illicit Finance Action Plan, hold bad actors accountable and identify potential gaps in existing enforcement, we look forward to receiving the public’s input on this urgent work.”

The executive order issued in March aims to establish a single, government-wide policy on cryptocurrencies and other digital assets.

Read more: Biden’s Executive Order Set to Fast-Track Crypto Policy

It has six areas of focus, including consumer and investment protection, protecting financial stability, preventing illicit finance, advancing U.S. leadership in the global financial system and economic competitiveness, promoting financial inclusion and encouraging responsible innovation.

Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra said on March 9, the day the executive order was issued, that the agency is committed to promoting competition and innovation while also reducing the risks that digital assets potentially pose to safety and security.

Read more: CFPB’s Chopra: Biden Order Recognizes Digital Asset Markets’ ‘Profound Implications’

“Today’s executive order recognizes that the dramatic growth in digital asset markets has created profound implications for financial stability, consumer protection, national security and energy demand,” Chopra said at the time in a statement.