U.S. Secretary of Treasury Janet Yellen spoke on Thursday about the growing market for cryptocurrency assets, speaking optimistically about the financial innovations of the blockchain while also cautioning that such developments must be regulated to protect consumers and the economy. During Thursday’s remarks, Yellen emphasized “responsible innovation” as the key feature of the Department of Treasury’s policy toward cryptocurrency, advocating for a cautious but open approach to the regulation of crypto assets. “Innovation that improves our lives while appropriately managing risks should be embraced. But we must also be mindful that financial innovation of the past too often has not benefitted working families, and sometimes it’s exacerbated inequality, giving rise to illicit finance risks and increased systemic financial risk,” said Secretary Yellen. “As banks and other traditional financial firms become more involved in digital asset markets, regulatory frameworks will need to appropriately reflect the risks of these new activities,” the …
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