Tuesday on the agenda of SEC: cryptocurrency’s and Facebook’s Libra

U.S. House Financial Services Committee, led by congressman Maxine Waters, will meet with the Securities and Exchange Commission (SEC) on cryptocurrencys and Facebooks Libra next week.

Crypto mom also present

The committee will hold a hearing on 24 September with SEC chairman Jay Clayton and four commissioners – Robert Jackson, Elad Roisman, Allison Lee and Hester Pierce. You may already know the latter. She is mainly positive about cryptocurrency and is therefore lovingly called crypto mom.

And who can forget Congressman Maxine Waters:

Regulations important

The topics discussed during the hearing are cryptocurrency, private markets versus public markets, including enforcement and the role of fiat currency.

It seems that the focus is on regulation. Consider how to deal with regulations concerning security and whether that applies to cryptocurrency.

The memo states: Federal securities legislation applies to securities, including shares, bonds and investment contracts, whether or not they are digital.

Libra is not left untouched

Part of the memo is also dedicated to Libra: Libra Investment Token could be a security, because it is intended to be sold to investors to finance start-up costs and to provide them with dividends.

The Libra token itself can also be a security, but Facebook does not intend to pay dividends and it is unclear whether investors would have a reasonable profit expectation. However, the Libra offering can be integrated into the Libra Investment Token offering. Then both would be seen as an effect.

The comparison is also made with ETFs, so-called exchange traded funds: Like ETFs, Libra could be exchanged by certain authorized traders and bought and sold on the open market.

The hearing will take place on 24 September and can be followed here.

Asia, not America

Crypto Mom Hester Peirce was also at a conference in Singapore this summer. She went home with two important conclusions. The first is that almost all innovation in the field of cryptocurrency takes place in Asia. Peirce therefore expects America to fall behind.

In addition, she saw that many companies want to settle in America, but that they wait because there is still no clarity about how the US wants to deal with cryptocurrency.

The hearing of next Tuesday is therefore called for her.