US Treasury Department has called for action to regulate cryptocurrencies before the next crisis hits

However, the department noted that there are a number of promising options for the use of cryptocurrencies

19.01.2024 - 11:19

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What’s new? US Treasury Assistant Secretary for Financial Institutions Graham Steele believes that lawmakers should develop regulatory standards for cryptocurrencies before the next crisis. He noted that after every financial crisis, new regulations such as the Dodd-Frank Act and the National Bank Act are passed. In the case of digital assets, policymakers have the opportunity to act before a critical situation occurs, Steele added.

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What else is known? According to Steele, “it is critical that any legislative proposals don’t undermine the already robust regulatory foundations that apply to financial institutions and capital markets.” He noted, however, that the United States “generally has strong investor and consumer protection laws that address many of the risks posed by crypto assets.”

Steele stressed that “existing laws and regulations apply, they have to be vigorously enforced so that crypto assets and services — and the consumers who use them — are subject to the same protections and principles as other financial products and services.”

However, the Treasury Department’s spokesperson noted that there are a number of promising uses for cryptocurrencies, which include cross-border payments, faster and cheaper settlements, and blockchain.

Steele also expressed his opinion on the Dogecoin (DOGE) meme token, calling such assets speculative. According to him, trading such cryptocurrencies is not so interesting anymore.

Earlier, the EU authorities agreed to tighten control over crypto transactions worth €1000 and above.

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