The United States House of Representatives Financial Services Committee held a hearing yesterday September 24th alongside the US Securities and Exchange Commission (SEC) Chairman Jay Clayton and four other commissioners at the SEC.
On the agenda for the hearing was some pretty key topics for the space including the SEC’s “Howey test” for looking over crypto securities, regulation moves for Facebook’s upcoming Libra stablecoin, and many more.
Here are the highlights on Libra.
Picking on Libra
Starting the hearing out was Financial Services Chair Maxine Waters who mentioned several SEC activities but noted Libra specifically saying:
“Facebook is looking to establish a new global financial system intending to rival the U.S. Dollar.”
Republican Ranking Member Patrick McHenry urged the commission “to reduce regulatory barriers,” stating that “you will hear a lot of doom and gloom today. It is not all doom and gloom.”
A call made by Waters in June in regards to a moratorium on the development of Libra kicked off a summer full of news on speculation of the token.
In response to Waters, Clayton said: “what we have developed is an ecosystem of financial assets over the years,” saying that he does indeed have an issue with the potential of digital assets to evade those existing regulations. Despite this, he did praise how efficient cryptocurrencies are whilst Water put pressure on Libra.
The rise in the price of cryptocurrencies has been often accompanied by an increase of general interest by big institutional investors or in this case, legal entities. Furthermore, at the end of 2017, we saw a lot more people enter the market who probably never even heard of cryptocurrency and get involved with the space.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!