US Treasury official calls for immediate crypto regulation

Graham Steele, U.S. Treasury Assistant Secretary for Financial Institutions, calls for establishing crypto regulation standards to preempt potential crises.

U.S. Treasury Assistant Secretary for Financial Institutions Graham Steele emphasized establishing standards before potential crises occur. Speaking at a George Washington University Law School event, Steele highlighted the opportunity for policymakers to learn from past financial crises, like those leading to the Dodd-Frank Act and the National Bank Act.

“For crypto-assets, policymakers have a chance to act before a crisis to adopt higher standards that support responsible innovation,” Steele said.

He stressed the balance needed in legislative proposals, advocating for regulations that bolster innovation without compromising existing financial regulations.

Steele’s tenure at the Treasury, covering areas like cybersecurity and crypto, comes amid a growing focus on cryptocurrency regulation in Washington. This includes President Joe Biden’s 2022 executive order, which proposed a comprehensive government approach to digital assets, targeting consumer protection, financial stability, climate risks, and national security.

The Treasury’s 2022 report, mandated by the executive order, called for vigilant monitoring of the crypto sector and robust enforcement of investor and consumer protection laws.

Where existing laws and regulations apply, they have to be vigorously enforced so that crypto-assets and services — and the consumers who use them — are subject to the same protections and principles as other financial products and services.

Graham Steele talking with the George Washington University Business and Finance Law Program

Steele also explored the positive potential of cryptocurrencies, citing their use in cross-border payments, cost-effective settlements, and immutable ledgers.