U.S. House Financial Services Committee to Hold Hearing Next week
The U.S. House Financial Services Committee is set to hold a hearing with Securities and Exchange Commission (SEC) next week.The hearing is to discuss about cryptocurrencies and Facebook’s Libra project, among other topics.
Moreover, the committee, led by Congresswoman Maxine Waters, will meet with SEC Chairman Jay Clayton, and four Commissioners - Robert Jackson, Elad Roisman, Allison Lee and Hester Pierce on Sept. 24th. Additionally, the one-panel hearing is dubbed, “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.”
Furthermore, in a memorandum of the upcoming hearing, the committee recognized the efforts of on clarifying whether a digital asset is an investment token. Earlier this year, the SEC issued guidance on these lines, essentially detailing the three conditions of Howey Test.
At the moment, there are two Bitcoin ETF proposals. The two were filed under the SEC’s review. Meanwhile VanEck and SolidX withdrew their proposal this week.
Libra at Center Stage
Furthermore, the committee also touched on the much talked about Facebook’s crypto project, Libra. The digital currency will be based on blockchain, backed by a reserve of assets and run by the Libra Association.
According to the memo, citing the Libra whitepaper; the committee noted Facebook’s intention to sell Libra Investment Tokens; to members of the Association and other investors to fund its startup costs.
“The Libra Investment Token could amount to a security since it is intended to be sold to investors to fund startup costs and would provide them with dividends. The Libra token itself may also be a security, but Facebook does not intend to pay dividends and it is unclear if investors would have a “reasonable expectation of profits.” However, the offer of Libra could be integrated into the offering of the Libra Investment Token, thereby deeming both securities.”
Facebook’s chief, Mark Zuckerberg shared a meal with top Senate Democrats, according to reports. Zuckerberg assured the lawmakers Libra Association “would not be launching its product without the buy-in from U.S. regulators.”
About The Author
Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.
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