Facebook’s Libra coin, this past week, has been receiving backlash after backlash, most of it coming from prominent personalities. It started with Chairman of the Fed Reserve, Jerome Powell, bashing the now-popular social media-backed cryptocurrency. President Donald Trump tweeted about it soon after, questioning the coin’s dependability.
Yet again, it is the start of another busy week for the coin which has been dominating headlines.
Already, the coin’s management hierarchy is under the watchful eye of the Securities Exchange Commission. According to a report by the Wall Street Journal, the SEC is now thinking of how it could regulate Libra and other digital assets.
The biggest question that the regulatory body is yet to answer is whether Libra should be classified as an exchange-traded fund (ETF) or not. The born of contention among those questioning the coin is because it is backed by several payment companies, including Mastercard, PayPal and Visa.
Another huge reason that could yet define Calibra is what its CEO, David Marcus, would say once he testifies before the Committee on Financial Services. The committee will first hold a meeting, slated for 10 am on July 17, 2019, in Washington. Among the topics expected to be talked about would be to examine Libra, how it is likely to affect its consumers, investors and the entire financial system.
There’s a general perception that Libra poses a huge danger to the conventional financial industry. Many seemingly believe that it might finally dismantle the mainstream financial landscape.
The Wall Street Journal report also mentions the use of the “Howey test” by the SEC. This test basically is a list of several guidelines plus if any particular cryptocurrency meets them. Ideally, through the “Howey test,” a coin is declared to be a security and thus registered with the SEC.
When all’s said and done, this week could finally decide the future of Libra.