Graham Steele, the U.S. Treasury Assistant Secretary for Financial Institutions, recently emphasized the need for setting standards for cryptocurrency regulation to prevent potential crises. Speaking at an event at George Washington University Law School, Steele highlighted the importance of learning from past financial crises, such as those that led to the Dodd-Frank Act and the National Bank Act.

Steele pointed out that policymakers have an opportunity to proactively establish higher standards for crypto-assets before a crisis occurs to support responsible innovation. He emphasized the importance of finding a balance in legislative proposals, advocating for regulations that encourage innovation while upholding existing financial regulations.

Steele’s focus on cybersecurity and crypto during his tenure at the Treasury aligns with the increasing emphasis on cryptocurrency regulation in Washington. This includes President Joe Biden’s 2022 executive order, which outlined a comprehensive government approach to digital assets, with a focus on consumer protection, financial stability, climate risks, and national security.

The Treasury’s 2022 report, as mandated by the executive order, called for close monitoring of the crypto sector and robust enforcement of laws protecting investors and consumers. The report emphasized the need for existing laws and regulations to be enforced rigorously to ensure that crypto-assets and services, along with their users, receive the same protections as other financial products.

In addition to addressing regulatory concerns, Steele also highlighted the positive aspects of cryptocurrencies, such as their role in facilitating cross-border payments, providing cost-effective settlements, and maintaining immutable ledgers.

For more insights on the future of crypto regulation in 2024, stay tuned for forecasts and perspectives.

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