This week, US Presidential candidate, Michael Bloomberg released his financial plan. Importantly, the plan includes a push for a robust regulatory framework to support STO development. Bloomberg believes only a clear regulatory framework can provide an environment to drive innovation in the space. The news showcases how blockchain crowdfunding is now a major issue in the US election.
According to Bloomberg’s new financial regulation plan, there would need to be some major changes made to the market. For one, the ex-mayor wants to see greater consumer protection measures put into place. Specifically, the plan lists strengthening the Consumer Financial Protection Bureau as a major goal.
Bloomberg wants financial institutions to monitor risk exposure more actively, and in a more consistent manner. Importantly, Bloomberg’s plan begins with a reminder of the effects of the 2008 financial crisis. Here he explains the origins of many of the consumer protections Donald Trump removed recently. He also promises to reform Wall Street and put the financial system to work for every American.
Bloomberg on Cryptocurrencies
In regards to cryptocurrencies specifically, Bloomberg points out that the market is now an asset class worth hundreds of billions of dollars. He describes how within this multi-billion dollar market there exists a high level of hype, fraud, and criminal activity. Bloomberg cites these reasons as the results of a fragmented and undeveloped framework.
Former New York City Mayor Michael Bloomberg via National Review
In Bloomberg’s plan, he would first assign which agencies are responsible for what type of tokens. From there, he would then get to work on creating a token taxonomy standard. This strategy would create a framework that would allow businesses to compare each token type and what tax regime it falls under. Additionally, he would like to see more transparency regarding token issuer requirements.
Innovation
Perhaps one of the most noteworthy parts of Bloomberg’s plan is the creation of a regulatory sandbox. This sandbox would work with new tech startups. Specifically, blockchain and tokenization platforms could garner support and gain access to helpful information via the group. Other countries such as Switzerland have seen great success using this method to spur growth in their markets.
Michael Bloomberg
Michael Bloomberg served as the 108th Mayor of New York City from January 1, 2002, to December 31, 2013. According to reports, Bloomberg has a yearly revenue of $10 billion with a combined workforce of 20,000 employees. Currently, the ex-mayor heads a self-named conglomerate – Bloomberg L.P.
Bloomberg L.P has seen significant growth since it entered the market. The firm took part in several acquisitions including the radio station WNEW, BusinessWeek magazine, New Energy Finance, the Bureau of National Affairs and the financial software company Bloomberg PolarLake.
Presidential Campaign
After missing two caucuses, he announced his presidential bid in November 2019. Since that time, Bloomberg has poured hundreds of millions of dollars into ad campaigns. For now, the cryptocommunity is eager to learn more about how this plan could affect the market if he gets elected.
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