Bloomberg’s campaign published a financial reform plan Tuesday, advocating for greater consumer protection measures and a stronger financial system. Specifically, the proposal suggests requiring financial institutions to monitor risk exposure, recording all financial transactions in a centralized database, strengthening the Consumer Financial Protection Bureau and a number of other recommendations. The proposal also recommends creating a regulatory sandbox for startups and “providing a clear regulatory framework for cryptocurrencies.”
“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,” the full proposal said.
Bloomberg’s plan recommends clarifying which agencies are responsible for overseeing the space, creating a framework to clarify when tokens are securities, “protecting consumers from cryptocurrency-related fraud,” clarifying the tax regime and defining the requirements for financial institutions in the space.