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Democratic presidential candidate Michael Bloomberg appeared at the Nevada Democratic debate in Las Vegas on February 19. Prior to the event, Bloomberg also released a plan to regulate cryptocurrencies.
“Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promises of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity,” Bloomberg states on the final page of his plan.
Five points for regulating cryptocurrencies
Bloomberg’s financial reform plan offers five methods for regulating cryptocurrencies.
- Clarify who’s responsible for overseeing cryptocurrencies generally
- A framework for initial coin offerings (ICOs) to be made and defined as they become securities
- To define capital and other requirements for financial institutions holding cryptocurrencies
- Clarify how cryptocurrencies should be taxed
- Protect consumers from cryptocurrency fraud
Bloomberg did not specify in detail on how these points can be achieved.
Former 2020 presidential nominee Andrew Yang, who dropped out of the presidential race last week, had proposed to clearly define cryptocurrency terminology, clarify its tax laws, and create a Department of Technology in an outline of his plan to regulate the crypto industry.
Regulating cryptocurrencies is especially significant in the wake of Facebook’s announcement that it plans to launch its Libra digital currency. Digital currency threatens to reduce government control over money around the world.