US Presidential Candidate Proposes Crypto Regulations

US Presidential Candidate Proposes Crypto Regulations

By Benson Toti - min read
Updated 21 March 2023

US presidential candidate Michael Bloomberg has put forward plans for new crypto regulations. Earlier this week, he published details of a new financial reform plan that mentions digital money.

The issue of crypto regulation has been raised by Michael Bloomberg
Image courtesy of Wikipedia Creative Commons

What Did He Say?

The financial reform plan launched by the Bloomberg campaign came out on Tuesday. It aims to provide safeguards to lower the risk of a future financial crisis.

In the final part of the document, the Democratic candidate looks at the US financial system, among other things. In here, he promises to help regulators to give a clear framework for cryptocurrencies. Bloomberg is quoted as saying that “regulatory oversight remains fragmented and undeveloped”.

He went on to mention the “promise of the blockchain, Bitcoin and initial coin offerings”, But he then warned of the “hype, fraud and criminal activity” that is present in the industry. In 2020 so far, we have seen issues such as the Altsbit hack and the alleged BitClub fraud.

His proposals would establish clarity over who is responsible for regulating cryptocurrencies in the US. They would also put in place a framework designed to protect consumers from fraud. He would also clarify the tax issues on this subject.

Bloomberg isn’t the first candidate in the presidential campaign to mention cryptocurrencies. Eric Swalwell and Andrew Yang both mentioned the blockchain, although neither now remains in the running. In fact, Swalwell received donations in cryptocurrencies.

Who Is Michael Bloomberg?

He is the former mayor of New York City and also founded Bloomberg L.P. Having only joined the election trail at the end of 2019, Bloomberg missed the first primary and caucus.

In the last few weeks, he has put millions of dollars into advertising his candidacy.  At the time of writing, he has around 16% of potential votes, putting him in second place nationally.

Bloomberg has been a controversial figure in the past. The billionaire is now making progress in his stance to become the next president of the US.

Will Crypto Regulations Be a Feature of the Campaign?

Since three candidates have already mentioned cryptocurrencies, they could become a feature of the Presidential campaign. Their regulation and the question of a crypto USD are now subjects that a lot of people are interested in.

Anyone who can produce clear policies in this area may attract extra support. Donald Trump mentioned last year that he is “not a fan of Bitcoin and other cryptocurrencies”. He also spoke out against Facebook Libra.

This gives other candidates a chance to gain extra support if they show a more crypto-friendly attitude. With the Federal Reserve chairman showing support for cryptocurrencies lately, it seems that there could be a place for the crypto regulations in the US financial system.