Facebook announced to launch its crypto project earlier this year, but the social media giant has been under constant scrutiny from regulators all around the world. According to the original whitepaper, interest accrued for the reserve assets would be used towards paying dividends to Libra Association members as the earliest investors in the project and other things.
Interest would only be used for the growth of Libra.
According to the updated whitepaper, interest received on reserve assets would not be shared with members of the Libra Association and instead would only be used to cover the costs of the system, ensure low transaction fees, and support further growth and adoption. The decision was probably made to prevent the possibility of a conflict of interest with the Libra Association members and the currency’s end-users.
US Lawmakers propose to classify stablecoins as security.
Earlier, a couple of US lawmakers proposed a bill to label all stablecoins as security and monitored by the US Securities Exchange Commission. However, Libra has denied that it can not be classified as a security. Regulators all around the world have criticized Facebook for its crypto project. Libra is scheduled to launch sometime next year, but it still has to get regulatory approval from several countries.