SEC Chair on Facebook’s Libra Cryptocurrency Project: Innovation Won’t Trump Securities Laws

    Facebook is still trying to carve the path for the launch of its new Libra token, but there are a lot of people in its way. The chairman of the U. S. Securities and Exchange Commission (SEC) Jay Clayton is one of these people.

    Clayton a was skeptic of the crypto market ever since people started Initial Coin Offerings (ICOs). Now, he will be a problem for Facebook, as he is very suspicious of it as well. Ever since Facebook announced its new token, regulators from all over the world are calling out the company and investigating its every move in order to determine if the new token would be compliant and safe.

    Obviously, Facebook wants to avoid the SEC at all costs. David Marcus, a representative from the company, has recently affirmed that Libra would not fall under the jurisdiction of the SEC because it was more akin to cash than security.

    The lobbying campaign of the company is trying to do the same, get as far as they can from the SEC, as they fear it may sink their product. No one from the company has talked to the SEC yet and it could certainly spell trouble if the token was regulated by them because the launch would be delayed in several months if it ever happened.

    Clayton often declined to comment directly on Facebook’s new product but he affirmed that anything that looks and operates like a security of exchange-traded fund (ETF) has to be regulated this way. And, according to some people, Libra seems a lot like an ETF.

    It looks like Facebook’s luck will depend a lot on whether the SEC decides to go after it or not. If they start to dig deeper, Facebook’s Libra will probably have a rockier launch than most executives of the company expected.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Gabriel Machado
    Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    General Motors (GM) Files Blockchain-Based Map Network Patent for Autonomous Vehicles

    General Motors (GM) plans to build a self-updating navigation system on blockchain to allow use across “specific roads” on autonomous vehicles. In a newly...

    BTC Proposes a Greater Value Than Gold; $670M Transferred For 26 Cents Within Its Network

    Bitcoin’s value proposition in fund transfers is so far one of the most cost-friendly avenues to send money globally. A recent transaction within its...

    COVID-19's Impact On The Economy Claims Another Business as Cambrial Capital to Shut Down

    Cambrial Capital which focuses on a Crypto fund of funds is set to shut down its operations in the near future according to insiders...

    Apple’s New Intelligent Prevention Tracking (ITP) on iOS Threatens Burner Wallets Existence

    Apple’s recent upgrade on the Safari WebKit might soon phase out the convenience of burner wallets within the cryptocurrency space for its users. ...

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.