New Bill ‘Managed Stablecoins Are Securities Act’ Could Put Facebook’s Libra Under SEC Purview
Lawmakers from the United States have recently introduced a new bill that has the goal of putting Facebook’s new stablecoin project Libra under the U. S. Securities Law. If the law is passed, Libra would be regulated by the U. S. Securities and Exchange Commission (SEC), which is very strict on its terms.
The new bill, named “Managed Stablecoins are Securities Act of 2019”, was introduced by two representatives from Texas: Lance Gooden and Sylvia Garcia. They suggested that the upcoming asset should have more scrutiny to be safe and not harm the investors or the economy. Knowing exactly who is behind it and how it will work.
According to Garcia, the main goal of the new piece of legislation is to remove any kind of ambiguity surrounding these assets. This would ensure that the government knew how to deal with them.
Gooden claimed that the law, which will apply to most stablecoins pegged to the USD and similar assets, will be important to protect the consumers, mostly. He affirmed that the investors need to know that they can trust these companies and the only way to do it is to regulate them properly.
Facebook obviously disputes the idea that its upcoming stablecoin is a security token. The company has claimed before that Libra will be a commodity. What is the main change in this case? The Commodity Futures Trading Commission (CFTC) would regulate it, and the organization is far more pro-crypto than the SEC.
The other reason is that mostly only accredited investors can buy and trade assets such as securities, so the larger share of Facebook’s users would not be able to use these tokens, which would be a huge issue for the plans of the company.