In a new financial regulation proposal, Michael Bloomberg, the US billionaire who is running for presidency, suggested the development of a regulatory framework for cryptocurrencies.
Clear Regulatory Framework For Crypto is Needed
Bloomberg’s campaign published a financial reform agenda supporting more consumer protection initiatives and a better financial system. In particular, the proposal recommends that financial institutions will track risk exposure, record all financial transactions in a centralized database, improve the Bureau for Financial Protection of Consumers and a range of other recommendations. The proposal also recommends the establishment of a regulatory sandbox for startups and “providing a clear regulatory framework for cryptocurrencies.”
“Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity,” the full proposal said.
Bloomberg’s plan recommends clarifying which agencies are responsible for overseeing space, creating a framework for clarifying when tokens are securities, “protecting consumers from cryptocurrency-related fraud,” clarifying the tax regime and defining space requirements for financial institutions.
Bloomberg, after California Rep. Eric Swalwell and Andrew Yang, both of whom have since dropped out of the race, became the first of a small group of presidential contender to discuss cryptocurrencies throughout his bid.
Swalwell briefly welcomed cryptocurrency donations during his term, while Yang also called for a national regulatory framework to address questions about how the government should handle space and supersede potentially inconsistent legislation at the state level.
Road to Presidency
The former mayor of New York and founder of Bloomberg L.P., entered the presidential race in November 2019 and skipped the first primary and caucus (New Hampshire and Iowa, respectively) due to late entrance into the primary process (former candidate Andrew Yang entered the race in November 2017).
Despite his late entry, Bloomberg has poured hundreds of millions of dollars into ad campaign, he is polling at roughly 16 percent, according to news site 538, enough to place second on the national stage.