June 18, 2024

A Bill Defining Stablecoins as Securities Submitted to Congress

A bill drafted by Sylvia Garcia has been introduced into the US Congress, which proposesregulate stablecoins through the provisions of the Securities Act of 1933.

“Market value of such digital assetsin whole or in large part, directly or indirectly determined on the basis of the value of a list or basket of assets, including digital assets that are stored or managed by one or more persons, ”the bill says.

This bill was a response to a possiblethe launch of stablecoin Libra, which is developing the social network Facebook. Initially, it was assumed that the coin would be tied 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 adopted, then allstablecoins will be regulated by the US Securities and Exchange Commission (SEC). However, it is very likely that the document will not be adopted, especially since it is not yet clear which parties and committees support the bill.

In July, the former chairman of the Commission on TradeUS Commodity Futures (CFTC) Gary Gensler said Libra is a security that should be regulated by the SEC. According to him, stablecoin is very similar to a traded exchange-traded fund (ETF), which falls under the jurisdiction of the SEC.