FedFin Analysis: Treasury Sees Few Crypto Benefits, Much Risk to Contain and Control
We follow our prior in-depth analysis of Treasury’s CBDC and payments report (see Client Report CBDC14) with a detailed assessment of the Department’s assessment of overall cryptoasset policy. We noted on Friday key recommendations and turn here to a more in-depth assessment of Treasury’s reasoning, recommendations, and likely action. This section of the response to the President’s executive order (see Client Report CRYPTO26) is notably uncharitable to cryptoassets, observing that broader use cases beyond trading and lending within the crypto verse have yet to materialize and may never do so. Even were this to occur, Treasury posits an array of risks that call for rapid regulatory and market-based action to ensure that greater crypto adoption does not come with still more risk, especially to vulnerable consumers and investors.