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Commissioners, SEC to talk about crypto and Libra at congress hearing

Friday 20 September 2019 10:46 CET | News

The US House Financial Services Committee have announced plans to question the Securities and Exchange Commission (SEC) about cryptocurrencies and Facebook’s Libra project.

On September 24, 2019, the committee will hold a one-panel hearing with SEC Chairman Jay Clayton, as well as Commissioners Robert Jackson, Elad Roisman, Allison Lee and Hester Pierce, according to a calendar notice on the House of Representatives’ website spotted by CoinDesk.

The hearing will cover the SEC‘s actions around the cryptocurrency space, as well as private markets vs. public markets; public company disclosures; enforcement; and fiduciary responsibilities. The notice also addresses Facebook‘s Libra crypto project, which was first announced in June 2019. The notice hints at possible securities implications for Libra’s companion token, which would be distributed to members of the association.

The notice explains: ‘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.’


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Keywords: US House Financial Services Committee, SEC, cryptocurrency, Libra, securities, tokens, Securities and Exchange Commission, Congress
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Countries: World