- U.S lawmakers disagree over Libra’s security classification
- Is Libra security or not?
Still on the matter of whether Libra security or not? Some United States Lawmakers are looking to term stablecoins as securities. With Libra considering adopting fiat-pegged stablecoins rather than a single token supported by a bag of national currencies. The proposed Crypto project by Facebook might be experiencing another regulatory issue.
For now, lawmakers are sponsoring the bill stating that stablecoins should be termed as securities to safeguard U.S consumers. Should be bill be passed, stablecoins projects like Libra will possibly fall under the purview of strict U.S securities regulations
Crypto critics of the motion state that such measures by the regulatory body will only serve to further diminish the country’s position on the evolving digital landscape. Some analysts have long accused regulators of disturbing innovation in the U.S crypto and blockchain space.
So far, Libra still stands its stance that its proposed stablecoin project is a commodity. The association is also surging forward with developing the payment system. Recently, the association released updates on the state of its testnet and itemizing the number of transactions carried out so far.
Is Libra security or not?
Two Texas representatives, Lance Gooden and Sylvia Garcia have proposed a piece of legislation that will term stablecoins as securities. The bill which is named “Managed Stablecoins are securities Act of 2019,” the bill is sponsored by representatives from both sides of the corridor. This bill could plan an even greater regulatory weight on stablecoin projects like Libra.
In a statement issued by The Hill, Representative Garcia, he stated that “Managed stablecoins, such as the proposed Libra, are securities under existing law. This legislation simply clarifies the statute to remove any ambiguity.”
Rep. Gooden, a co-sponsor of the bill also resonated with the sentiment that Congress should take the lead in forming the legal landscape for cryptos and the digital space in general. According to Gooden, “It’s the responsibility of Congress to clarify the regulatory framework that will apply to stablecoins, especially now that mainstream institutions are offering them to consumers.”
Bitcoin (BTC) Price Today – BTC / USD
It seems that consumer protection fears are at the heart of lawmaker’s deeds to put stablecoins under the security token model. Although, such a move increases the regulatory liability on Stablecoins. So far, U.S securities law consists of a litany of reporting and compliance requirements. With the prospect of Libra launching soon still uncertain, it remains ambiguous the type of token the project will use.