US Congress Schedules Sept. 24 Hearing With SEC — Crypto on the Agenda

The United States House of Representatives Committee on Financial Services has scheduled a hearing with Securities and Exchange Commission (SEC) Chairman Jay Clayton and four other SEC commissioners to discuss, among other topics, crypto.

In a memorandum from Sept. 19, the Committee on Financial Services stated that it will hold a hearing on Sept. 24 entitled “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.”

Present alongside Clayton will be Commissioner Hester Peirce (also known as Crypto Mom) and another three officials.

Libra coin could amount to a security

The Committee on Financial Services has included cryptocurrencies on its list of topics for discussion and points out that the federal securities laws apply to securities — including stocks, bonds, and investment contracts — regardless of whether they are digital. 

The hearing will touch upon exchange-traded funds (ETFs), whether or not digital assets are a security or exempt from securities law, and Facebook’s planned launch of Libra in 2020. The document 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.” 

Zuckerberg continues tour of Washington, D.C.

Cointelegraph reported on Sept. 19 that Facebook CEO Mark Zuckerberg is making the rounds with policymakers in Washington, D.C. to discuss “future internet regulations” — most recently with Senator Josh Hawley.

Earlier on Sept. 19, Cointelegraph reported that Zuckerberg had dinner with a handful of U.S. lawmakers, where he faced intense scrutiny over the Libra project.