There will be a hearing conducted by the U.S. House of Representatives Committee on Financial Services on September 24, 2019. The discussion will be held with the Securities and Exchange Commission (SEC).
The hearing, with five SEC commissioners, will have a wide range of topics which include those that fall under their purview. One of the commissioners is Hester Peirce, who is a frequent critic when it comes to bitcoin exchange-traded fund.
Among the topics discussed is Facebook’s cryptocurrency, Libra, which made everyone be at each other’s throats lately. The memorandum indicates that the committee may question if Libra can be regarded as a security.
The memorandum says: The Libra Investment Token could amount to a security since it is intended to be sold to investors to fund startup costs and would provide them with dividends. The Libra token itself may also be a security, but Facebook does not intend to pay dividends, and it is unclear if investors would have a “reasonable expectation of profits.” However, the offer of Libra could be integrated into the offering of the Libra Investment Token, thereby deeming both securities. Like ETFs, Libra would be redeemable by certain authorized resellers and bought and sold in the open market.
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