US Lawmaker proposes a bill to regulate stablecoins like Libra – Libra News

Democratic Representative from Texas, Sylvia Garcia proposed a bill before the Senate House Financial Services Committee to regulate cryptocurrencies like Libra. The proposed bill, if passed, would classify stablecoins as securities. However, the issuers of stablecoins have argued that it is not a security. Facebook, CEO Mark Zuckerberg, is also scheduled to testify before Congress today to answer regulatory concerns surrounding Libra.

Yesterday Democrat Representative from Texas, Sylvia Garcia, presented a bill before Senate to regulate stablecoins. According to the proposed bill, all managed stablecoins should be classified as securities.

Rep. Sylvia Garcia argues that digital assets known as managed stablecoins are investment contracts and therefore are securities. The bill also proposes to amend the definition of securities to include stablecoins in it. However, the issuers of stablecoins have argued that it is not a security.

The proposed bill states that the value of stablecoins is backed by “in whole or significant part, directly or indirectly, by reference to the value of a pool or basket of assets and therefore they must be regulated according to SEC existing guidelines. US regulators have been quite harsh on Facebook’s stablecoin. Today Facebook’s CEO, Mark Zuckerberg, would testify before Congress to answer lawmakers questions about Libra.

ADVERTISEMENT
Karol Rhodri
Karol Rhodri
Karol is a strong professional with a Master of Library & Information Science - MLIS focused in Mathematics and Computer Science from Empire Beauty School-State College. He has a strong belief that every technology-related company will surely adopt blockchain, it's just a matter of time.

Leave a reply

Please enter your comment!
Please enter your name here