The US lawmakers want to classify all stablecoins as securities and they include libra here in the list as we are reading further in the Libra coin news today.
Libra considers adopting the fiat-pegged stabelcoin method rather than only one token getting supported by a basket of national currencies so the crypto project could be facing another regulatory issue. In the meantime, the US lawmakers who are sponsoring the bill, claim that the stablecoins will be classified as securities in order to protect the customers in the United States. If the bill passes, the projects such as Libra will fall under the US securities regulations.
The critics of the move noted that such measures will only serve to further complicate the country’s position in the emerging digital landscape and some of the commentators have long accused the regulators of chilling innovation in the crypto and blockchain space. Libra maintains its position that the stablecoin project is a commodity. The association also noted that they are improving their payment system and released updates on the state of the testnet and detailing the number of all transactions that were carried out so far.
As reported previously, the two Texas representatives proposed new legislation that will classify the stabelcoins as securities. Named as the Manager Stablecoin are Securities Act of 2019, the bill sponsored by the representatives from both sides of the aisle could put a much larger weight on stabelcoin projects such as Libra. Representative Sylvia Garcia noted:
“Managed stablecoins, such as the proposed Libra, are clearly securities under existing law. This legislation simply clarifies the statute to remove any ambiguity.”
The co-sponsor of the bill, Rep. Gooden, also explained the sentiment that the Congress will take the lead in shaping the legal landscape for all cryptos and the digital space overall. 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.”
The Libra association commented on the proposed bill and Dante Disparte, the head of policy and communications noted:
“We maintain that responsible financial services innovation and regulatory oversight are not in contest. The Libra payment system is designed from the ground up to serve as a payment infrastructure that can empower billions of people left on the margins of today’s networks. The Libra Coin is simply a proxy for an instantaneous payment system that is low friction and high trust.”
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