Facebook’s stablecoin project seems to find no escape to light for now. According to the latest report by Reuters, global securities and futures trading regulator, the International Organization of Securities Commissions (IOSCO) is pondering over imposing securities laws on the stablecoins.
As per Ashley Alder, the Chairperson of the commission, IOSCO has recognized the benefits of the digital coins while keeping in consideration their possible risks. As concluded, the analysis signifies certain stablecoin traits that are similar to typical securities. Therefore, to implement transparency on their development, stablecoins like Libra should be included in existing securities policies where laws that govern disclosures, registration, and reporting might light up as the best way to regulate them.
Libra has evidently brought hardships for all stablecoins. Authorities seem to object every stablecoin in order to indicate the regulations over Facebook’s controversial project. Moreover, this implication can further weaken all the stablecoins. Regulators appear to leave no ends studied before they accept the project. Several countries have already claimed to give no green flag to Libra and argue that Libra must be prevented.