Bloomberg Promises 'Clear Regulatory Framework' For Cryptocurrencies If Elected

Democratic Presidential candidate Michael Bloomberg on Tuesday proposed creating a "clear regulatory framework" on cryptocurrencies as part of financial reforms if he is elected president in the upcoming elections.

What Happened

"Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped," a document released by the Bloomberg campaign on Tuesday said. "For all the promise of the blockchain, Bitcoin and initial coin offerings, there's also plenty of hype, fraud and criminal activity. Mike will work with regulators to provide clearer rules of the [game.]"

The said plan of Bloomberg includes clarifying which agency will have regulatory oversight over cryptocurrencies, provide a framework for initial coin offerings, define whether and which tokens are securities, protect consumers from fraud, give a clear stance on tax implications, and establishing a standard for financial institutions working with cryptocurrencies.

The matter was first reported by cryptocurrency publication CoinDesk, which noted that Bloomberg is the third presidential candidate to promise clearer cryptocurrency regulations. Andrew Yang and Eric Swalwell both took a pro-cryptocurrency-businesses stance, but are now out of the Democratic race for the presidential nomination.

Why It Matters

President Donald Trump has suggested that he's "not a fan" of cryptocurrencies and Bitcoin, and his administration has opposed the plans of private players like Facebook Inc. FB entering the financial services field with cryptocurrencies without fulfilling the same requirements as asked of traditional banks.

I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity....

— Donald J. Trump (@realDonaldTrump) July 12, 2019

Treasury Secretary Steven Mnuchin, in his testimony to the Congress last week, said that the government is bringing "significant new requirements" for cryptocurrencies, but withheld any further information. Bloomberg was a late entrant to the presidential race and is yet to contend in a state caucus as Bernie Sanders and Pete Buttigieg take the initial lead in the democratic primaries.

Photo Credit: Public domain image via Wikimedia.