Congresswoman Maxine Waters’ Committee holding a crypto hearing with SEC next week
September 20, 2019, 7:10AM EDT
1 min read
The U.S. House Financial Services Committee, led by Congresswoman Maxine Waters, is meeting the Securities and Exchange Commission (SEC) next week, to discuss about cryptocurrencies and Facebook’s Libra project, among other topics.
The committee will hold a hearing with SEC Chairman Jay Clayton, and four Commissioners - Robert Jackson, Elad Roisman, Allison Lee and Hester Pierce - on Sept. 24.
Memo of the hearing includes topics such as cryptocurrency, private markets vs. public markets; enforcement and fiduciary, among others. While it is not clear which specific areas the committee might focus on in the cryptocurrency space, it could discuss regulations such as the application of securities laws to cryptocurrencies.
“The Federal securities laws apply to securities, including stocks, bonds, and investment contracts, regardless of whether they are digital,” reads the memo.
It adds: “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,” the memo concluded.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
In this episode of The Scoop, StarkWare Co-Founders Uri Kolodny and Eli Ben-Sasson walk through StarkWare's recent fundraise and discuss how their firm is bringing affordable blockchain transactions to the masses.