In the new financial reform plan, Michael Bloomberg advocates for creating a clear regulatory framework for cryptocurrencies. The framework includes principles that should clarify the status of cryptographic assets in the financial system. The billionaire and media magnate seeks to obtain, for instance, greater government oversight and better consumer protection.
Presidential candidate in favour of cryptocurrency regulation
Michael Bloomberg is an American entrepreneur, politician and philanthropist, who is currently running for the presidency of the United States. He decided to discuss the topic of cryptocurrency in a financial reform plan that he has recently published. Bloomberg, among other things, wants more regulatory oversight over cryptographic assets which, according to him, is supposed to protect consumers from cryptocurrency fraud.
It is worth noting that Michael Bloomberg is one of the richest people in the world. As Forbes reports, he is currently in 9th place on the list, with assets estimated at $64 billion. What is more, he is a former mayor of New York and the founder of one of the largest news agencies in the world, Bloomberg LP which is specialized in providing information on financial markets. He is also a candidate in the presidential primaries of the Democratic Party in 2020.
On Tuesday, Bloomberg published his financial reform plan. The plan will be implemented if he will be elected president after the US elections in 2020. What the plan recommends is strengthening the financial system and introducing more consumer protection measures. First and foremost, however, it suggests obliging financial institutions to monitor risk exposure, to record all financial transactions in a centralized database, and to strengthen CFPB. The plan recommends creating a regulatory sandbox for startups as well and providing clear regulatory framework when it comes to cryptocurrencies.
Bloomberg: on the cryptocurrency market there is "plenty of hype, fraud and criminal activity"
"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."
- writes Bloomberg in the document.
The plan recommends clarifying which government agencies are responsible for the supervision of the cryptographic space and the creation of a regulatory framework explaining when tokens are securities. It also recommends protecting consumers against cryptocurrency fraud, making appropriate changes to the tax system, and listing requirements reserved for financial institutions operating in crypto space.
Bloomberg is the last of a small group of presidential candidates who decided to include cryptocurrencies in their campaign (Eric Swalwell and Andrew Yang left the race).