Graham Steele, the Assistant Secretary for Financial Institutions at the U.S. Treasury, is urging the establishment of regulatory standards for cryptocurrencies to prevent future crises.
During a speech at an event at George Washington University Law School, Steele emphasized the importance of learning from past financial crises, such as those that led to the Dodd-Frank Act and the National Bank Act, in order to set preemptive standards for crypto-assets.
Steele stated, “For crypto-assets, policymakers have an opportunity to set higher standards before a crisis hits, in order to promote responsible innovation.” He highlighted the need for a balanced approach in regulatory proposals, advocating for rules that encourage innovation while upholding existing financial regulations.
Steele’s focus on cybersecurity and cryptocurrencies at the Treasury coincides with the increasing attention on cryptocurrency regulation in Washington. President Joe Biden’s executive order in 2022 outlined a comprehensive government strategy for digital assets, with a focus on consumer protection, financial stability, climate risks, and national security.
The Treasury’s 2022 report, as required by the executive order, called for enhanced monitoring of the cryptocurrency sector and strict enforcement of laws protecting investors and consumers.
Steele also mentioned the potential benefits of cryptocurrencies, including their use in cross-border payments, cost-effective settlements, and secure, unchangeable ledgers.
As discussions on cryptocurrency regulation continue, forecasts and perspectives on the topic for 2024 are being closely watched. Stay updated by following us on Google News.