US Treasury strategy for financial inclusion mentions digital assets

The US Treasury’s strategy only included crypto as a potential risk for consumers rather than a means to improve financial inclusion.
The US Treasury’s strategy only included crypto as a potential risk for consumers rather than a means to improve financial inclusion.

The United States Department of the Treasury has released its national strategy for financial inclusion, only including cryptocurrencies as a potential risk for consumers.

In an Oct. 29 notice, the US Treasury said its National Strategy for Financial Inclusion in the United States report resulted from a request from Congress and included recommendations to “advance consumer access to safe financial products and services and strengthen financial security.”

According to the department, one of its methods of financial inclusion was through research of a “series of publications on consumer activities and risks related to digital assets,” citing a September 2022 report.

According to the US Treasury, the national strategy recommended increasing access to “safe and affordable credit,” improving the inclusivity of financial services and products from the government, and “protecting consumers from illegal and predatory practices.”

National Economic Advisor Lael Brainard credited Vice President Kamala Harris with helping expand “access to capital, credit, and economic opportunity.”

Related: US Treasury used AI to recover $4 billion in fraud over past year

The strategy by the government department suggested that it would not be considering cryptocurrencies like Bitcoin (BTC) as a means of financial inclusion in the United States. Though many digital asset advocates recognize the potential risk of crypto investments, the technology has often been touted as a way to level the playing field for individuals who may not always have access to traditional banking.

US election could affect crypto policy in 2025

It’s unclear if Vice President Harris would consider this strategy if she were victorious over Republican Donald Trump in the US election in November. The Democratic candidate has suggested she would support the industry if elected but still expressed concerns over consumer protection.

During his administration, US President Joe Biden issued an executive order establishing a framework for digital assets and instructing government departments to study the ecosystem’s potential impact on consumer and investor protection, financial stability, financial inclusion, responsible innovation, the US’ financial leadership and combating illicit financial activity. The Treasury Department has been involved in developing policy recommendations for crypto in accordance with the order.

Magazine: Most DePIN projects barely even use blockchain: True or false?