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September 21, 2022

U.S. Treasury Department Asks for Public Opinion on Potential Risks of Digital Assets

By Mehron Rokhy

The U.S. Treasury Department is asking the public for their opinions on how to handle the potential risks of crypto assets.

In a newly published document, the Treasury Department is asking the general population how they feel about the illicit use of crypto assets and what steps can be taken to curb them.

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The Department says its objective is to better understand the public’s views on the risks associated with crypto assets and take action accordingly.

“Through this request for comment (RFC), Treasury is requesting input from the public to understand the public’s view on the emerging risks as well as what actions the U.S. government and Treasury Department should take to mitigate the risks.

Through this RFC, Treasury also seeks to further understand how public-private collaboration may improve efforts to address the risks.”

Some of the questions include asking the public if they believe future crypto technologies would present new risks rather than mitigate them, which regulatory changes they think would work best to stifle illicit crypto activities, what the financial risks associated with non-fungible tokens (NFTs) and decentralized finance (DeFi) platforms are, and their general opinions on crypto mixing services.

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One question asks,

“What additional steps should the U.S. government consider to address the illicit finance risks related to mixers and other anonymity-enhancing technologies?”

Last month, the Treasury Department’s Office of Foreign Assets Control (OFAC) blacklisted crypto mixer Tornado Cash after it deemed the service as a national security threat.

According to OFAC, over $7 billion has been laundered through the service since its inception in 2019.

The move sparked outrage across the crypto community, as many prominent figures, including Cardano (ADA) co-creator Charles Hoskinson, spoke out against the sanction saying that it violates the first amendment.

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