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.
“If Mr. Zuckerberg wants to be king, he can be king in the social networks. But I don’t want him to have the additional arsenal of financial data on people,” said Rep. Sylvia Garcia.
— Rep. Sylvia Garcia (@RepSylviaGarcia) October 22, 2019
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.