Lawmakers Considering to Classify Stablecoins as Securities
Stablecoins may became a security, if lawmakers’ efforts are successful. Garcia and Gooden presented their bill to the House Financial Services Committee at the end of November, and spoke at a committee hearing on the topic of big data in the financial industry. The bill, titled “Managed Stablecoins are Securities Act of 2019,” makes it pretty clear by the title the bill’s intentions. According to a report by Cointelegraph, Garcia reportedly stated that Facebook’s stablecoin and other such coins are “clearly securities under existing law.” She further indicated that the legislation clarifies an already-existing statute and that by removing the ambiguity, the regulatory structure of the digital assets will protect consumers and ensure proper government oversight going forward.
Gooden appears to share Garcia’s sentiments. He also sponsored the bill and indicated that Congress has a responsibility to clarify the regulatory framework applicable to stablecoins. According to the Cointelegraph report, Gooden reportedly stated that investors need to know on a daily basis that they can trust issuers behind financial assets, and that the bill will provide them with the security they deserve by applying laws that are used to regulate financial securities to the digital currencies.
Reportedly, David Marcus, who is the head of Facebook’s involvement in the Libra project, reportedly shared with reporters earlier this week that the company strongly believes that the Libra coin is not a security and it has good legal opinion that confirms the view of the outside counsels that the company has consulted.
At this point, the project is in its early stages, and Zuckerberg reportedly stated that “I actually don’t know if Libra is going to work.”