On Monday 17 February 2020, US presidential candidate Micheal Bloomberg and his campaign team published a formal financial reform plan to strengthen the US economy and help it recover from the “damage Trump did” after the 2008 financial crisis.
Among dozens of other financial recommendations, the formal proposal included a mention of creating a “clear regulatory framework for crypto-currencies”. According to Bloomberg, “cryptocurrencies have become a hundreds of billions of dollars worth of assets, but regulatory oversight remains fragmented and undeveloped.
With the goal of rebuilding the country’s financial future, Bloomberg’s plan suggests that there must be more security and transparency in the US economy. This would require financial institutions to better monitor their risk exposure and record all financial transactions through a central database, in addition to many other recommendations, such as strengthening the Consumer Financial Protection Bureau. Bloomberg’s plan provides for a centralized record of all financial transactions to restore “safeguards and safeguards” that he believes were introduced after the 2008 financial crisis and then abolished by President Donald Trump.
Bloomberg says he can reverse the damage by centralizing and establishing a clear regulatory framework for Bitcoin (BTC) and cryptocurrency – the new asset class that is supposed to resist centralization.
“Mike will enhance America’s ability to anticipate and prevent future crises by restoring funding from the Office of Financial Research, requiring major financial institutions to monitor their risk exposure, and creating a centralized record of all transactions in the markets.”
Focus on consumer protection
The plan focuses heavily on consumer protection and aims to ensure fairness in the granting of instalment loans, car loans, credit reporting, access to credit, banking services and financial opportunities. Despite the centralization that runs counter to the ethos of decentralized crypto currencies such as Bitcoin and Ethereum, Bloomberg says he will support Fintech innovation by creating a secure environment for entrepreneurs and a regulatory framework for crypto currencies.
With all the promises of the Blockchain, Bitcoin and Initial Coin Offerings, there is also a lot of hype, fraud and criminal activity”. All of this, according to many, represents a significant vulnerability and risk to the future of both the American and global economy.
In other words, through the recommendations of the proposal, there is hope that Bloomberg and his team can ensure that the Wall Street mistakes that caused the 2008 financial crisis never happen again. And at the same time, he mentions that crypto-currencies could play a role.
Although he has only recently entered the race for the office of US president, Bloomberg has already invested millions of dollars in his advertising campaign. And currently he is at about 16% in the polls, which puts him in second place nationally. Bloomberg also mentioned in his proposal that it must be clearly regulated which US authorities will be responsible for regulating the US crypto industry.
The chosen agency will also be responsible for defining when tokens should be considered as securities. It will also clarify how the tax system should deal with cryptography, define the requirements for stock exchanges and other providers, and “protect consumers from crypto-currency related fraud”.