Secretary of Treasury Janet Yellen has issued a commend on the Executive Order published today that addresses the fast-growing digital asset industry.
Secretary Yellen said that President Joe Biden’s order calls for a coordinated approach to digital asset policy:
“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses. It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”
Yellen added that Treasury will work with other government agencies to produce a report on the future of money. They will also convene a meeting of the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets.
“And, because the questions raised by digital assets often have important cross-border dimensions, we’ll work with our international partners to promote robust standards and a level playing field,” stated Secretary Yellen.
She explained that Treasury has been coordinating with the President’s Working Group on Financial Markets, the FDIC, and OCC to study stablecoins. Treasury will also build upon the published National Risk Assessments, that “identify key illicit financing risks associated with digital assets.”
“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts. Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”
Yesterday, Treasury posted a notice on consumer education efforts in regards to crypto. U.S. Under Secretary of the Treasury for Domestic Finance, Nellie Liang said “nistory has shown that, without adequate safeguards, forms of private money have the potential to pose risks to consumers and the financial system.” Treasury will continue to emphasize investor protection while promoting responsible innovation. The Treasury’s Financial Literacy and Education Commission (FLEC) will form a new subgroup on digital asset financial education.