With a sense of urgency, the US Congress has set Sept. 24 as a day to thrash out issues relating to cryptocurrency together with the leadership of the SEC, which comes just a day after Bakkt launch.
On Sept. 19, the Committee on Financial Services came to an agreement that the topic, “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat,” would be the topic of discussion and Sept. 24 was chosen as the D-day, which is, just for a reminder, the day after Bakkt launch.
This hearing will consist of the chairman of the SEC, Jay Clayton, Commissioner Hester Pierce, who is also known as Crypto Mom, and three other commissioners.
Will Libra Make It Into the List of Securities?
Since cryptocurrency has always been a source of concern to the Committee on Financial Services, it is not a surprise that it is a priority in the forthcoming meeting. The Committee has always stressed the fact that the federal securities laws apply to all securities, which includes investment contracts, bonds and stocks, be they digital or not.
The hearing will cover topics like Exchange-Traded Funds (ETFs), the launch of Facebook’s stablecoin, Libra, slated for 2020 and if digital assets can qualify as securities or not. On the issue of Libra, the document intimated that:
“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.”
The Founder and CEO of Facebook, Mark Zuckerberg, has been making strategic moves in Washington DC to ensure the success of his stablecoin, Libra. As the eyes of the world are on the planned Libra stablecoin, not a lot of people are comfortable with what it would represent.
Zuckerberg has held meetings with some lawmakers, one of them being senator Josh Hawley, which saw him being grilled over Facebook’s forthcoming project, Libra.
Count Down to the Launch of Bakkt
In only a few days from now, precisely on Sept. 23, Bakkt will be launched, and it is yet to be determined how this will impact Bitcoin. The launch of the Bakkt platform will enable users to deposit physically-settled futures contracts. This service will first commence in the US.
After many months of regulatory blockade, Bakkt was finally approved a month ago, the news reflected on its price with a 10% increase, shooting it up to over $400. At the moment, popular opinions have it that the coming of Bakkt is what Bitcoin needs to return to its days of glory and reclaim its top position as King of the crypto economy.