• Thu, 14 Nov 2019, 06:45 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Stablecoins in danger of being classified as a security as Mark Zuckerberg prepares to defend Libra

A U.S. lawmaker has recently proposed a bill that would categorize stablecoins as securities, a move that is likely aimed at Facebook’s Libra project.

Thought Catalog (www.thoughtcatalog.com)

Wed, 23 Oct 2019, 07:49 am UTC

The classification of stablecoins is still being discussed by lawmakers as it can pave the way how securities can be labeled in the coming years. Now, the endeavor has moved forward and a U.S. lawmaker has introduced a bill that would label stablecoins as securities.

Rep. Sylvia Garcia is currently pushing forward legislation to the House of Financial Services Committee that would land stablecoins under the scope of the Securities Act of 1933. If this gets the green light, it would be bad news for stablecoins as the U.S. Securities and Exchange Commission will be regulating it.

The agency would impose strict requirements on stablecoins similar to stock including disclosure, registration, investor accreditations, and more. Although Garcia’s proposal didn’t single out a specific stablecoin, the fact that it was introduced amidst the reviewing of Facebook’s Libra cryptocurrency is a tell-tale sign of its intention, CoinTelegraph reported.

Facebook releases Mark Zuckerberg’s Libra statement

Libra has been closely monitored by legislators as they fear it can be used for illegal means ranging from money laundering to financing terrorist organizations. Facebook CEO Mark Zuckerberg is slated to make his case for Libra on Wednesday. However, ahead of his testimony, Facebook has opted to share Zuckerberg’s statement, reiterating the need for the U.S. government to greenlight Libra lest it wants to be left behind by China, Engadget reported.

“Over the long term, if it means more people transact on our platforms, that would be good for our business. But even if it doesn't, it could help people everywhere, the statement added.

Libra investors scared off by regulations

The problem is that Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler has already said that Libra is looking more and more like a security. Amidst regulatory bodies clamping down on Facebook’s endeavor, initial investors have been scared off by all the probing including Visa and Mastercard.

Other banks are also hesitant to throw their hat in the ring with Libra. But that could all change depending on how Zuckerberg argues Libra’s case in front of the committee tomorrow. Looking at the situation, however, it’s safe to say that the odds are not in favor of Zuckerberg and his team.

Image Credit: Thought Catalog (https://www.flickr.com/photos/stockcatalog/26405895567/in/photostream/)

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,692.55 (-1.38%)
  • Ethereum (ETH) $185.19 (-1.81%)
  • XRP (XRP) $0.269800 (-1.75%)
  • Bitcoin Cash (BCH) $278.25 (-2.95%)
  • Litecoin (LTC) $59.48 (-2.93%)
  • Bitcoin (BTC) $8,692.55 (-1.38%)
Nov 14, 2019 (Thursday)
12:14
Amun AG launches Tezos ETP on Swiss SIX Exchange; makes available 7 crypto ETPs on Boerse Stuttgart
11:38
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:37
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
10:59
Samsung SDS integrates QEDIT’s private asset transfer solution with Nexledger blockchain
10:46
Crypto Technicals: BTG/USD slips lower to test 4H 200 SMA, break below to see more downside
10:11
ASX-listed firm DigitalX launched new bitcoin fund
09:23
Telegram denies all SEC allegations concerning its gram token and sale
08:23
Crypto Technicals: XMR/USD pauses shy of 110-EMA (67.251), break above to fuel more gains
07:17
AFME calls for a common approach for regulation of crypto-assets in Europe
06:49
Crypto Technicals: XRP/USD edges higher from fresh 3-week lows at 0.2565, bias strongly bearish
06:21
Chinese bitcoin mining giant Canaan seeks to raise $100M in US IPO
05:20
Crypto Technicals: LTC/USD breaks below 21-EMA, eyes 50-DMA at 57.28
05:19
Crypto data provider Messari raises $4M from Uncork Capital, Coinbase Ventures and others
04:35
Crypto wallet startup Bitski secures $1.8M from Winklevoss Capital, Coinbase and others
04:06
Crypto Technicals: BTC/USD confined to narrow range trade, 5-DMA caps upside at 8814
Nov 13, 2019 (Wednesday)
13:19
CME sets January 13 as target date for bitcoin options launch
12:25
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:25
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
12:17
HSBC, SGX, Temasek explore DLT for end-to-end digitalization of fixed income securities
11:18
Crypto Technicals: LTC/USD trade rangebound, holds support at 21-EMA (60.12)
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft