Libra can get the status of securities
U.S. Congresswoman Sylvia Garcia said she was working on securing the security status for Facebook's Libra stablecoin.
A Texas Democrat, in a statement dated April 16, said that the latest changes to Libra White Paper have significantly changed the status of stablecoin, which has now acquired explicit features of securities.
According to Congresswoman, Libra will rely on a “basket of currencies,” and the value of the coin will depend on a third party, which, according to the Hanoi test, allows stablecoin to be classified as a category of securities. (Note - The Hanoi test was developed by the US Supreme Court to verify that a transaction matches the concept of an “investment contract.” If the result is positive, the transaction must be qualified as security).
The main task of Sylvia Garcia is to prove that Libra should be under the jurisdiction of the Securities Commission (SEC). The statement of the representative of the authorities can be considered the first reaction to the changes of the whitepaper, which the Libra Association adopted to find a compromise with the regulators who severely criticize this project.
Recall that in June last year, representatives of the US government finance committee demanded the cessation of token development, after which Mark Zuckerberg spoke to Congress, answering questions about Libra.
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