It seems like cryptocurrency is starting to permeate the US Presidential race as Democratic candidate Michael Bloomberg submitted a financial reform plan in which he calls for clear regulatory guidelines for cryptocurrencies.
Bloomberg's Reform Plan
With the cryptocurrency market worth hundreds of billions, Bloomberg stressed the importance of clearing up the ‘fragmented and undeveloped’ cryptocurrency space.
Bloomberg naturally blamed President Trump for the mess of the financial system and for exposing average Americans to catastrophic financial risk, and vowed to ‘reform Wall Street and put the financial system to work for every American.’
He’s keen to introduce a sandbox for new financial startups, which will help them to ‘test concepts before being subjected to the full weight of regulations.
Crypto Mom Has a Similar Idea
This mirrors the idea of SEC Commissioner Hester Peirce, who wants to introduce a three-year grace period for crypto projects.
Crypto Mom’s proposal is for crypto entrepreneurs will be given a ‘safe harbour’ in which they should have enough time to decentralize their networks before worrying about securities laws.
This resonates with Bloomberg’s idea of creating the sandbox, but Bloomberg wasn’t completely pro crypto, like Andrew Yang, who stood down from the race last week.
‘For all the promises of the blockchain, Bitcoin and initial coin offerings there’s also plenty of hype, fraud and criminal activity,' said Bloomberg.
Regulatory Clarity is Critical for Crypto Going Forward
There’s no doubt the regulatory clarity is a necessity, and Bloomberg did say he wanted to see clear guidelines for ICOs, with an aim to define which ICOs are a security and which are not, while also protecting the public from scams.
He also stressed the importance of clarifying which tax bracket they should fall under, and how they will be categorized for institutional investors.
There’s no doubt regulatory clarity is needed as soon as possible. Crypto purists will argue that we don’t need regulations and crypto was intended to evade it, but the truth is crypto can only work alongside the fiat and legacy space.
And if the big institutional money is to find its way into the crypto space, then clear regulations are critical.
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