The U.S. Treasury Department has released a new strategy to promote financial inclusion, aiming to help people gain access to the financial system. However, in the 35-page report, cryptocurrency was only mentioned briefly as a potential risk to be aware of. This comes at a time when Vice President Kamala Harris, who has shown interest in crypto during her election campaign, is part of an administration that seems to be keeping digital assets at arm’s length.
While Harris has expressed support for crypto as part of her economic agenda, the Treasury Department’s report does not reflect this sentiment. The report highlights the risks associated with digital assets, emphasizing the importance of research and awareness in the industry. Treasury Secretary Janet Yellen is expected to emphasize the need for safe and affordable financial products to ensure financial security for all Americans during a banking event in New York.
Despite arguments from the crypto sector that digital assets can provide a low-barrier entry into finance, the Treasury Department does not appear convinced of its benefits for financial inclusion. Groups like the Center for American Progress and the Brookings Institution have challenged the notion that crypto can effectively promote financial inclusion.
It remains unclear whether the Vice President’s office had any influence on the Treasury’s strategy, which seems to differ from the crypto-friendly stance Harris has shown. In contrast, former President Donald Trump, who has also shown enthusiasm for crypto in his 2024 campaign, faced challenges from his own administration’s Securities and Exchange Commission regarding the legal basis of Ripple.
As the debate on financial inclusion and cryptocurrency continues, it is essential to consider the diverse perspectives and potential risks associated with digital assets. The Treasury Department’s strategy underscores the importance of research and awareness in navigating the evolving landscape of finance and technology. While the Biden administration’s approach may not align with the expectations set by Harris’ campaign, it reflects the complexities and considerations involved in shaping policies around emerging technologies like cryptocurrency.