As of Monday, February 17th, 2020, U.S. presidential candidate, Micheal Bloomberg, and his campaign team have published a formal financial reform plan, aimed at strengthening the U.S. economy and helping it recover from the “the damage Trump has done” following the financial crisis of 2008.
Amongst dozens of other financial recommendations, the formal proposal also included the mention of creating a “clear regulatory framework for cryptocurrencies.” According to Bloomberg, “Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped.”
Better Late Than Never
Aimed at rebuilding the country’s financial future, Bloomberg’s plan suggests there needs to be more safety and transparency in the U.S. economy if another crash similar to the 2008 financial crisis is to be avoided.
For this, he suggested that financial institutions need to monitor their risk exposure better, as well as recording all financial transactions via a centralized database, on top of many other recommendations, such as working to strengthen the Consumer Financial Protection Bureau.
According to the proposal, Bloomberg wants to “reform Wall Street and put the financial system to work for every American”.
And as far as creating a regulatory framework for crypto, he had this to say, “For all the promise of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity”. All of which, according to many, represents a significant vulnerability and risk for the future of both the American and the global economy.
In other words, through the proposal’s recommendations, the hope is that Bloomberg and his team will be able to ensure that the mistakes made by Wall Street causing the 2008 financial crisis won’t ever happen again. And at the same time, he is mentioning that cryptocurrencies are going to have a part to play in it all.
Bloomberg For U.S. President
Although he has only recently joined the race for U.S President, Bloomberg has already sunken millions of dollars into his advertising campaign. And as of today, he is currently polling at around 16%, placing him in second place at the national level.
Bloomberg’s mention of cryptocurrency also made a recommendation of clarifying which U.S. agencies are going to be responsible for regulating the U.S. crypto industry.
The chosen agency will also be responsible for defining when tokens should be considered as securities, clarifying the tax system surrounding crypto, defining the requirements for financial institutions, as well as “protecting consumers from cryptocurrency-related fraud.”
As it is, this could be big news for the future of Bitcoin, which as of the time of writing this, is currently trading at around $9,918.75.
Featured image courtesy of Associated Press