US Treasury Department Begins Awareness Campaign on Risks of Investing in Crypto Assets
The US Treasury Department is coordinating an extensive education campaign aimed at educating the general public about the risks associated with crypto investing.
The individual measures are being implemented by more than 20 subordinate authorities, including the US Securities and Exchange Commission.
The United States Department of Treasury is launching an initiative to publicize the risks of crypto investing. It aims to educate people about the dangers involved in investing in all types of crypto assets.
A senior official said the Treasury Department is taking the move as digital assets move from a niche to the mainstream. Therefore, the Treasury Department’s Financial Literacy and Education Commission will release educational materials to spread information about the concepts surrounding cryptocurrencies. The public should also be informed specifically about how digital assets work in comparison to conventional means of payment.
Nellie Liang, undersecretary at the Ministry of Finance, spoke about the crypto risk education initiative, saying the focus of the program is on people with limited access to traditional financial services.
“We are hearing more and more from investors and households buying crypto assets, and we recognize the complexities of how many of these assets work. We have the feeling that more education and more awareness of the risks could be helpful in this area as well.”
20 federal authorities coordinate the individual measures
The Treasury Department’s initiative involves 20 agencies, including the US Securities and Exchange Commission. The campaign will also support regulators’ ongoing mission to protect investors from scammers.
Liang further said the Ministry of Finance aims to use the initiative to raise awareness of the risks of crypto investing while not hampering emerging new technologies and innovations.
It’s not just governments that are developing initiatives to educate people about crypto and related topics. At the end of January, the American professional basketball player LeBron James started an educational initiative in cooperation with Crypto.com. The initiative aims to educate students in her hometown of Akron about digital assets and the possibilities of blockchain in general.
In addition, peer-to-peer platform Paxful unveiled its new Bitcoin and altcoins education and training center in El Salvador. Dubbed “La Casa Del Bitcoin” – the Bitcoin House – the training center charges no fees from trainees and is available to the local community.
It is important that the public is properly informed about the potential risks of investing in cryptocurrencies. Especially given the sheer number of different cryptocurrencies – there are now over 10,000 – investors should be careful and do their research before investing their money in digital assets. Many young people around the world now see cryptocurrencies as a form of investment with great potential – what they often do not see is the great risk potential.
A recent study shows that the number of British millennials and Gen Z millionaires has increased from around 1,000 last year to 2,000 today. The study also shows that most of these young millionaires are crypto investors. The value of cryptocurrencies grew by more than $3 trillion in 2021 as crypto platforms launched marketing campaigns to attract new investors in droves.