U.S. Treasury Undersecretary for Financial Institutions Graham Steele has called for establishing standards to regulate cryptocurrencies to prevent a potential crisis.
Assistant Secretary for Financial Institutions, U.S. Treasury graham steele He emphasized establishing standards before a potential crisis occurs. At the George Washington University Law School event, Steele emphasized the opportunity for policymakers to learn from past financial crises leading to the Dodd-Frank Act and the National Bank Act.
“For cryptocurrency assets, policymakers have an opportunity to take action to adopt higher standards that support responsible innovation before a crisis occurs,” Steele said.
He emphasized the balance needed in legislative proposals, advocating for regulations that enhance innovation without compromising existing financial regulations.
Steele’s tenure at the Treasury Department, which covers areas such as cybersecurity and cryptocurrencies, comes amid growing interest in cryptocurrency regulation in Washington. This includes President Joe Biden’s 2022 executive order proposing a comprehensive government approach to digital assets aimed at consumer protection, financial stability, climate risk, and national security.
The Treasury Department’s 2022 report, as per the executive order, called for careful monitoring of the cryptocurrency sector and strong enforcement of investor and consumer protection laws.
Existing laws and regulations, where applicable, must be strongly enforced to ensure that cryptocurrency assets and services, and the consumers who use them, are subject to the same protections and principles as other financial products and services.
Graham Steele speaks with the George Washington University Business and Financial Law Program.
Steele also explored the positive potential of cryptocurrencies, citing their use in cross-border payments, cost-effective payments and immutable ledgers.