This new financial reform plan was published on Tuesday, advocating for greater consumer protection and a stronger financial system.
“Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped,” reads the full proposal.
Clearer Rules for Crypto Market
The proposal talks about how despite all the promise of the blockchain technology, Bitcoin, cryptos, and initial coin offerings (ICOs), there remains plenty of fraud, criminal activity, and hype in the market.
As such, Mike plans to work with regulators to provide “clearer rules.” This will include clarifying the responsibility for overseeing cryptocurrencies and protecting consumers from cryptocurrency-related fraud.
He will work towards providing a framework for ICOs by defining when the tokens will be classified as securities. Moreover, clarification on how investments in cryptos will be taxed along with defining the capital and other requirements for financial institutions holding cryptocurrencies.
Financial institutions will be required to monitor risk exposure, strengthening the Consumer Financial Protection Bureau, and recording financial transactions in a centralized database, suggests the proposal. It further recommends creating a regulatory sandbox for startups for a clear regulatory framework.
Another Pro-Crypto Candidate Joins Presidential Race
Bloomberg isn’t the only presidential industrial candidate who is targeting the crypto audience, he is, however, the latest one. These small groups of pro-crypto presidential candidates include Andrew Yang and Rep. Eric Swalwell, both of whom have dropped out of the race.
In the current regime as well, a senior official of President Donald Trump has suggested a tax-free investment outside of 401(k) contributions, that could act as a buying boost for the stock market including investments like Bitcoin.
Bloomberg, the founder of Bloomberg L.P. and former New York City mayor joined the presidential race in Nov. 2019 who is now pouring millions of dollars into his campaigns.
Currently, he is polling at about 16 percent amidst the allegations of racism and sexism, who also has reportedly settled several alleged sexual harassment cases.