US Treasury’s Financial Inclusion Strategy Highlights Crypto Risks Amid Divergence from VP Harris’s Positive Crypto Stance
The US Treasury’s newly released national strategy for financial inclusion highlights digital assets as potential risks instead of tools for inclusion, marking a cautious stance which diverges from some advocates who see cryptocurrencies as facilitators of financial access. This strategy, initiated as a response to a Congressional mandate, seeks to improve consumer access to financial services while ensuring protection against associated risks. Vice President Kamala Harris has been acknowledged for her efforts towards enhancing economic opportunities, yet her precise stance on crypto if elected remains unclear, despite her showing support with an emphasis on consumer protection. The strategy aligns with President Biden’s previous directives on digital asset reviews. As the 2024 presidential election approaches, the discussion around cryptocurrencies continues, with both Harris and former President Donald Trump having shown interest, though their historical approaches diverge.
Bearish
The US Treasury’s strategy underscores a cautious approach towards cryptocurrencies, focusing on risks rather than opportunities, which may affect investor sentiments negatively. While Vice President Harris recognizes the potential for economic opportunities, the administration’s consistent emphasis on consumer protection and regulatory concerns suggests heightened regulatory scrutiny, potentially stifacing growth and engagement in the crypto space in the short to medium term.