In an effort to raise awareness about the risks that come with investing in digital assets, the US Treasury Department through its Financial Literacy Education Commission is developing educational materials. Through this, the department will inform the public how crypto assets operate and differ from traditional assets.
Nellie Liang, the Treasury undersecretary for domestic finance, revealed that they are targeting people that have limited access to mainstream financial services. She said the department is very much aware of the increasing number of investors and households buying crypto assets. And the department acknowledges the complexity of how these digital assets operate. Liang pointed out that this area needs more education and awareness.
Financial literacy and better education will definitely boost the public. As such, regulatory bodies have faced criticism about protecting consumers. Experts say that while the intention may have been good, it has resulted in the exclusion of disadvantaged communities from accessing crypto wealth-building opportunities.
Cleve Mesidor, the founder of The National Policy Network of Women of Color in Blockchain, recently pointed out that while focus on financial literacy and skills training and workforce training is acceptable, it is inclined towards consumer protectionism.
Keeping these in mind, the US Treasury’s new education division is made up of 20 different agencies, including SEC. It may ease concerns that regulators have about risks associated with crypto investment. Moreover, it could enhance their ongoing mission to safeguard investors from industry scams.
Liang said the Treasury Department is taking a proactive approach keeping in mind that digital assets could offer additional benefits for cross-border payment or financial inclusion. It should be noted that educational initiatives are not limited to governmental departments.