For cryptocurrencies to blossom, there has to be a comprehensive strategy regarding regulation, especially in the United States. The good news is that 2020 US presidential aspirant Mike Bloomberg is open to bringing more regulations in the crypto industry if he becomes the next president.
Clearer Regulations For Cryptocurrencies
Michael Bloomberg has laid out a clear financial reform proposal that entails plans to strengthen the financial system, protect consumers and address the United States’ most pressing issues. In particular, Mike’s plan will require large financial institutions to monitor their risk exposure as well as creating a centralized database of all transactions.
All of these will be aimed at preventing another financial crisis like the one witnessed in 2008 by restoring necessary measures that President Donald Trump has sidelined.
Additionally, the former New York mayor hopes to boost healthy competition in the finance sector by “creating a ‘regulatory sandbox’ where startups can test concepts, and by providing a clear regulatory framework for cryptocurrencies.”
The proposal reads in part:
“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.”
In order to help solve some of the regulatory concerns around crypto, Bloomberg proposed doing the following:
- Identifying which government agencies have regulatory oversight over cryptocurrencies.
- Providing a framework for crypto by establishing which ones fall under securities classification and which ones do not.
- Provide for consumer protection against scams in the crypto industry.
- Clarifying all the requirements for financial institutions holding crypto.
- Giving clear guidelines on how crypto investments will be taxed.
It’s worth noting that Bloomberg is not the first US presidential hopeful to mention cryptocurrencies. Besides accepting donations in crypto, Andrew Yang and Eric Swalwell also addressed crypto in the past. However, these two have now withdrawn from the 2020 presidential race.
US: A Bellwether In Everything Except Cryptocurrency
Notably, regulations around cryptocurrencies are rather murky in the United States. As a country that is the trendsetter in international commerce, the US is especially lagging behind in terms of cryptocurrency regulations.
For starters, the U.S Securities and Exchange Commission has concentrated only on classifying some cryptocurrencies like Ripple’s XRP. The CFTC has classified cryptocurrencies as commodities whilst the IRS deems them as a property that should be taxed. This notable lack of a common ground has left many investors confused and unwilling to get into cryptocurrencies.
According to a recent poll, Bloomberg came in second place with 19%. Although his chances of winning in November are quite slim as things stand today, it would be a huge accomplishment for crypto having a US president who recognizes cryptocurrencies.