Janet Yellen calls for cryptocurrency regulation to mitigate risks

U.S. Treasury Secretary Janet Yellen believes that a regulatory framework for cryptocurrencies is necessary to reduce risks and fraud surrounding the decentralized space, she said in a prepared speech at American University’s Kogod School of Business Center for Innovation. “Our regulatory frameworks should be designed to support responsible innovation while managing risks -- especially those that could disrupt the financial system and economy,” Yellen explained. As traditional financial institutions become more involved with blockchain-based digital assets, Yellen stressed that the government should support and "ensure responsible innovation" by forming "tech neutral" regulations, citing potential rule changes driven by distributed ledger technology. “That process should be guided by the risks associated with the services provided to households and businesses, not the underlying technology,” she said. Speaking to crypto price volatility, Bitcoin (BTC-USD), Ethereum (ETH-USD) and other digital tokens "have been quite volatile, which has inhibited their widespread use in payments," Yellen said, adding that cryptos carry