Michael Bloomberg, the billionaire behind the Bloomberg Terminal and a U.S. Presidential Candidate, has proposed the creation of a “clear” regulatory framework for cryptocurrencies.
In a new financial reform plan published by Bloomberg’s campaign, it advocates for greater consumer protection measures and a stronger financial system. Among its recommendations are the creation of a regulatory sandbox for startups and providing “a clear regulatory framework for cryptocurrencies.”
The proposal reads:
Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped.
It adds that “for all the promise of the blockchain, bitcoin, and initial coin offerings” there’s fraud and other criminal activity taking advantage of people. The proposal recommends clarifies which agencies would be overseeing the cryptocurrency space, and creating a framework to clarify when tokens are deemed securities.
It also goes into clarifying the cryptocurrency tax regime and defining requirements for financial institutions in the space. It adds it aims to protect consumers “from cryptocurrency-related fraud.” Outside the crypto space, it would require financial institutions to monitor risk exposure by recording all financial transactions on a centralized database, among other recommendations.
Bloomberg has become the latest in a group of presidential candidates to address cryptocurrencies during their campaign. Initially, Democratic candidates Andrew Yang and Eric Swalwell both addressed the space and accepted crypto donations. Yang notably also called for a national regulatory framework on cryptocurrencies. Both candidates have ended their presidential campaigns.
Michael Bloomberg notably entered the presidential race in November 2019 and has so far poured millions of dollars into ad campaigns. According to political news website FiveThirtyEight, he is currently polling at 16%. His candidacy has been hit with allegations of racism and sexism. As well as his support for practices deemed unconstitutional.