Further Institutional Involvement in the Decentralized Finance World

On Tuesday, the Treasury Department of the US broadcast an invitation for comments on the Executive Order on digital assets from President Joe Biden in March this year. This came in tandem with a speech from John Cunliffe, the Bank of England Deputy Governor, urging for the regulation of cryptocurrencies.

Moreover, this comes on the back of developments this past week from the Financial Stability Board (a G20 watchdog) and again from the US Treasury regarding the world of decentralized finance.

The US Treasury Asks For Public Views On Cryptocurrencies

The US Treasury issued an invitation for comments for US citizens to comment on the Biden Administration’s Executive Order on digital assets.

Under Secretary of the Treasury for Domestic Finance, Nellie Liang stated, “For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams.”

Also Read: When Is The Best Time To Buy Crypto?

Bank Of England Governor Urges Crypto Regulation

Bank of England Deputy Governor John Cunliffe was speaking in Singapore at the British High Commission and highlighted that lessons should be learned from the crypto winter.

He stated, “Crypto-technologies offer the prospect of substantive innovation and improvement in finance,” Adding, “But to be successful and sustainable, innovation has to happen within a framework in which risks are managed: people don’t fly for long in unsafe airplanes.”

This is just another example of The Bank of England and other central banks and governmental institutions calling for regulation.

A Stream Of Institutional Involvement In The Decentralized Finance World

These two developments of institutional involvement in the decentralized finance world come on the back of two similar developments we have featured in our blogs over the past week.

Just yesterday, we reported that the Financial Stability Board was to propose “robust” global cryptocurrencies rules. The watchdog, which is a global financial regulator that includes all G20 countries, is due to recommend international regulations for cryptocurrencies and stablecoins in October this year.

Furthermore, last week we reported that the US Treasury had issued an international crypto regulation framework. In that article, we highlighted how “the U.S Treasury Department set out a framework for regulating international cryptocurrency transactions” and “outlined how it could work together with foreign, financial regulators to build common standards for regulating cryptocurrencies in order to make it more difficult for bad actors to commit and profit from crimes.”