The United States Congress are reportedly to deliberate on a bill drafted by a member, that seeks to classify all stablecoins as securities. According to the bill authored by Sylvia Garcia, the Rep for Texas’ 29th congressional district, it would be “amending statutory definitions of the term security.”
The bill hopes to introduce an Act tentatively called the “Stablecoins are Securities Act of 2019” and was submitted to the House Financial Services Committee on Friday the 18th of October. It is thought by many that the real purpose of the bill might just be a part of the efforts by authorities, to keep Facebook’s upcoming Libra on a leash.
Already, Facebook CEO Mark Zuckerberg is being thoroughly questioned by members of Congress, about their reservations regarding the plans for the Libra. Congress is generally unsure that such a powerful tool like a worldwide cryptocurrency, is safe enough in the hands of Facebook, a social media giant that has had more than its fair share of legal troubles so far.
A few countries around the world have also voiced several concerns about the Libra, what it represents and also how it can be easily manipulated by criminals to aid their illicit activities. However, both Calibra chief David Marcus and Zuckerberg himself, have said that they will not launch the asset until they satisfy regulators.
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