As Mike Bloomberg makes his bid to win the Democratic nomination for the 2020 U.S. Presidential election, he has unveiled his financial reform policy, which includes plans for cryptocurrencies and FinTech sandboxes to help startups get up and running.
“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 document on Bloomberg’s campaign website stated.
In fact, many world leaders have expressed concerns about cryptocurrencies, including current U.S. President Donald Trump, who tweeted last year that digital currencies “are not money, and whose value is highly volatile and based on thin air.”
But crypto doesn’t appear to be going anywhere, with social media giant Facebook even developing its own digital currency called Libra. So the former Mayor of New York City has included crypto in his financial reform plans, pledging to clarify who is responsible for overseeing cryptocurrencies; provide a framework for initial coin offerings; protect consumers from crypto-related fraud; explain how investments in cryptocurrencies will be taxed; and define requirements for financial institutions holding cryptocurrencies.
And in an effort to help financial technology startups compete against established institutions, Bloomberg will support the creation of a “regulatory sandbox,” allowing them to test concepts before being subjected to total regulation.
The U.S. has been falling behind its international counterparts with FinTech, with a recent survey of 700 stakeholders—financial institutions, core processors, payment network operators, FinTechs and acquirers—finding that nearly 60 percent felt that the U.S. is not making enough progress towards in this area.
And Bloomberg’s success in business could help him beat Trump if it comes down to the two men in the 2020 election. In fact, earlier this month a poll of small business owners in the U.S. shows that they believe only presidential Bloomberg can beat Trump.
“The Democratic presidential candidate with the most crossover appeal to Republican and independent small-business owners is Bloomberg, who, like Trump, has a business background,” Gallup research consultant Megan Brennan said.