Yellen on Crypto
Responsible innovation. Risk management.
Yellen shared her latest view on cryptocurrency last week.
Both crypto enthusiasts and critics found messages they like.
A few quotes from Yellen’s speech.
“Innovation that improves our lives while appropriately managing risks should be embraced.”
Yellen cited payday loans and securitization of subprime mortgages as examples that innovation benefits entrepreneurs and investors, while not necessarily benefiting the working class.
“Regulation should be tech neutral.”
Yellen stated that the regulation should be guided by the risks associated with the services provided to households and businesses, not the underlying technology.
Regardless of whether there is cryptocurrency involved, consumers should be protected from fraud; AML rules still should apply.
"When regulation fails to keep pace with innovation, vulnerable people often suffer the greatest harm."
Well, regulation always lags behind innovation, so be aware of the risk.