- U.S. presidential candidate Mike Bloomberg is proposing new regulations that would legitimize Bitcoin and other cryptocurrencies.
- According to the proposal, cryptocurrencies have become assets worth billions of dollar and a robust legal framework is therefore needed.
The presidential candidate in the United States, Michael Bloomberg, has published a proposal that could have a lasting impact on the crypto market. The proposal is part of the financial reform he intends to implement if he wins the elections scheduled for November this year. Bloomberg is the candidate with the greatest affinity for crypto-currencies after Andrew Yang left the race.
Bitcoin is a billion-dollar asset
The proposal promises to give legitimacy to Bitcoin and other cryptocurrencies. It also recognizes the progress and adoption that cryptocurrencies have had over a decade. This has resulted in Bitcoin having a market capitalization of billions of dollars. The proposal also recognizes one of the demands that the crypto-industry has been making for years: clear rules and a robust legal framework. The proposal states:
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.
Under the proposal, Bloomberg will work with regulators to provide a legal framework for Initial Coin Offerings. This will be done by clearly defining which cryptocurrencies are to be considered securities by regulators. This key question is one of the most controversial on the crypto market. Although the Commodity Futures Trading Commission (CFTC) has managed to define Bitcoin and Ethereum as commodities, other altcoins such as Ripple‘s XRP still do not have a clear classification.
In addition, Bloomberg promises to clarify the responsibility for overseeing cryptocurrencies, protect consumers against fraud, clarify what taxes will be required to invest in cryptocurrencies, and define other requirements for financial institutions that hold or own cryptocurrencies.
Bloomberg’s proposal is concise and touches on key points of a reform that for some has dragged on too long. Mike Novogratz, Bitcoin promoter and founder of Galaxy Digital, has repeatedly expressed his concern about the unclear regulations in the United States that are intended to define a clear policy on cryptocurrencies. In his opinion, the United States must allow innovations in the crypto and blockchain sector in order not to lose out to other countries.
Under the Trump administration, the policy toward cryptocurrencies tightened. Trump declared last year that he was “not a fan” of Bitcoin and other cryptocurrencies. He also said that the United States and the world already have a dominant currency: the US dollar.