Post a Comment Print Share on Facebook

US Finance Committee is sharpening the knife: bill wants to regulate Stable Coins as securities

According to the U.S. Deputy Sylvia Garcia Stable Coins such as Facebook Libra fall under the Definition of securities. In order to ensure clarity, it must be a

- 86 reads.

US Finance Committee is sharpening the knife: bill wants to regulate Stable Coins as securities

According to the U.S. Deputy Sylvia Garcia Stable Coins such as Facebook Libra fall under the Definition of securities. In order to ensure clarity, it must be adapted to the existing legislative framework now. A corresponding design under the Democrat submitted to the Finance Committee of the house of representatives this week. Before it decides on the initiative, wants Facebook chief Mark Zuckerberg this Wednesday to collect the deputies in points for Libra.

By David Barkhausen
23. October 2019BTC$9.457,67 2.43%part Facebook Twitter LinkedIn xing mail

These days, Facebook's Libra comes belonging to falter. Visa, MasterCard, Ebay or PayPal – they have all struck the sails and the controversial currency project to the back. It is believed, however, observers such as BaFin President Felix Hufeld, the Stable Coin is still a long way from the table. Also, the U.S. Congress is the further fact that the currency is born, sooner or later, the light of the world – and is sharpening already the knife.

on Tuesday, the 22. October, published draft law proposes the Democrat Sylvia Garcia to the Finance Committee of the house of representatives, to classify Stable Coins in the future as securities (the Securities). According to Garcia, it would have to assume the value of authority, the SEC, the oversight of Libra and competitors.

Now it was that current laws, with precise formulations to adapt. It is said in the draft:

Stable Coins are investment contracts and thus, by definition, securities [...]. On the part of the Congress is to provide clarity and the precise statutory provisions on the inclusion of stablecoins to adapt.

the Deputy is in Stable Coins clearly Securities. So would be guided by the value of the underlying assets and currencies. This would, in turn, offer investment opportunities.

[view] Bitcoin, Ethereum, Ripple, IOTA, and the most well-known crypto-currencies on eToro trade. Why eToro? Free Demo account Mobile Trading App; payments by PayPal; a wide selection of various financial products (crypto-currencies, stocks, commodities, ETFs, foreign exchange, indices); Social Trading with a big international Community.

Now free account

open, Led by the US Dollar to currencies Libras value from a collection of global and sovereign bonds are put together.

politicians are skeptical – How to deal with a Libra?

In the run-up to the bill had called for in the U.S., recently, members mainly from the ranks of the Democrats – a ban on the planned exchange project.

the Finance Ministers worldwide are skeptical. In the framework of the IMF Ministerial meeting in Washington, they warned in the last week prior to regulatory uncertainty, and threatened with a Veto for the group currency. Similar concerns a recent paper of the economically leading G7 countries harbors.

if the bill to the Finance Committee to the consent, that, in the future, but a long way to go until the adoption front. The deputies of both Parliament chambers would then, in the house of representatives and in the Senate, behind the design.

on the Part of the Supervisory authorities seems to be a support, however, is already apparent. The Chairman of the financial market Supervisory authority CFTC, Gary Gensler was in July, compared to the Senate, Libra fulfill, in his view, the criteria for securities and should therefore fall under the responsibility of the partner authority SEC. This is reiterated again in September of this assessment.

the proposal Garcias will be Supplemented this week by a second draft law. This provides for a prohibition for the stock exchange listing of securities, should provide the copyright stablecoins or in direct connection with third parties that do this. Here, especially on the part of Facebook and its remaining partners is likely to rain considerable resistance.

Zuckerberg wants to smooth the waters and sets the trade war

this Wednesday, may 23. October, a date to the house, where the U.S. members of the Finance Committee, long-looking forward to a have: Then Facebook is CEO Mark Zuckerberg the law to answer to donors to Libra are.

As a preparatory document, he wants to smooth the waters. So Facebook would not support the publication of Libra, as long as it is not the official blessing of the U.S. authorities exists. At the same time he does not want to point out that the decision would lead to violence it only in the case of the independent Calibra-organization – the parent company of the self.

at the same time Zuckerberg will advertise, but more for the project with a view to the ongoing trade war on the competition with China – and thus the signs of the times. In his view, Libra represents an important counterweight to the planned Central Bank's monetary Beijing is:

While we are discussing [Libra], not waiting for the Rest of the world. China wants to bring in a timely manner similar ideas in the coming months on the way to [...]. Libra, in turn, is supported largely by the U.S. Dollar, and I think this will expand the financial leadership role of the United States, as well as our democratic values and our Supervisory function in the world. If America does not bring any innovations, it is not guaranteed, our financial leadership.

Here he could see the members quite belonging.

More:

Libra in front of the Bundestag: "We don't see the Problem," Libra-hearing: sugar mountain, "a tool for theft," Mark Zuckerberg: "We do not sell any customer data,"#Facebook#Libra#stablecoins
Avatar
Your Name
Post a Comment
Characters Left:
Your comment has been forwarded to the administrator for approval.×
Warning! Will constitute a criminal offense, illegal, threatening, offensive, insulting and swearing, derogatory, defamatory, vulgar, pornographic, indecent, personality rights, damaging or similar nature in the nature of all kinds of financial content, legal, criminal and administrative responsibility for the content of the sender member / members are belong.