US to Recognize Libra and other Stablecoins as Securities
Main page News, US, Stablecoins, Libra, Regulations
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Nov. 22, 2019
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Sylvia Garcia and Lance Gooden, members of the US House of Representatives, have presented a bill that recognizes "managed stablecoins" as securities.

The bill aims to "protect consumers from certain cryptocurrencies, such as Libra." Gooden said:

"By applying to this new type of digital currency the regulations that are already used to regulate securities, this law will provide users with the security they deserve."

Sylvia Garcia assures that the classification of Libra as a security according to current law is "obvious" even though Facebook has said many times its currency is not a security. Sylvia says:

"This law simply clarifies the law with the aim of removing any ambiguity. Ensuring transparency in the regulatory structure for this type of digital asset will help protect consumers and ensure adequate state supervision."

One of the main legal problems that most popular cryptocurrencies have to deal with is their consideration as security. For instance, the SEC has recently banned the ICO of Gram, Telegram's native toke, because it believes it is an unregistered security.

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