Libra is not security says David Marcus in the hearing

The “Threat” Libra has generated negative reactions from all governments in the world, and the US Congress is no exception. Two members of the Financial Services Commission have proposed a bill declaring cryptocurrencies stable as securities.

Representatives Sylvia Garcia (D-Texas) and Lance Gooden (R-TX) introduced the project called

“The stable cryptocurrencies managed are securities.” The purpose of the law is to “protect consumers against certain cryptocurrencies, such as the Facebook Libra Project.”

“Regular investors need to know that they can trust issuers behind their financial assets,”

Gooden said in a statement.

“This bill would bring them the security they deserve by applying the laws we use to regulate financial securities in this new field of digital currencies.”

The Libra is “clearly” a type of secrutity under existing laws, Gracia said in turn.
Garcia and Gooden were among parliamentarians who insisted that Mark Zuckerberg be audited by the finance committee in October.

Their collaboration on this bill marks another bipartisan effort to put regulatory constraints on the stable cryptocurrency proposed by Facebook.

Libra is not security

David Marcus has frequently insisted that Libra is not security in its statements. During his hearing before the Congress, he argued that Libra is more like a PayPal digital payment system than a secrutities trading fund or an ETF.

The lack of clarity of American law has also caused problems for other crypto companies. For example, the SEC sued Telegram, blocking the distribution of GRAM tokens. The regulator claimed that the token is a security, which means that their 2017 sale was illegal.