Altcoin News: A Bill Defining Stablecoins as Securities Was Presented to Congress

October 23, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The U.S. Congress received a bill by Sylvia Garcia (D-Texas), which proposes to regulate stablecoins through the provisions of the Securities Act of 1933.

“The market value of such digital asset is determined, in whole or in significant part, directly or indirectly, by reference to the value of a pool or basket of assets, including digital assets, held, designated, or managed by one or more persons,” the bill says .

This bill was a response to the possible launch of the stablecoin Libra, which is developing the social network Facebook. Initially, it was assumed that the coin would be pegged to a whole basket of assets, including currencies and goods. However, recently it became known that Libra can use third-party stablecoins.

If the bill is passed, then all stablecoins will be regulated by the US Securities and Exchange Commission (SEC). However, it is very likely that the document will not pass, especially since it is not yet clear which parties and committees support the bill.

In July, former chairman of the Commodity Futures Trading Commission USA (CFTC) Gary Gensler said that Libra — is security, which should be regulated by the SEC. In his opinion, stablecoin is very similar to an exchange-traded fund (ETF), which falls under the jurisdiction of the SEC.

Author: Marko Vidrih