US Congress Discusses Crypto with SEC officials on September 24

By Robin Wong | September 20, 2019

The US House of Representatives Committee on Financial Services has set up a hearing session with Jay Clayton – current SEC director – along with 4 more SEC officials, to address issues regarding crypto primarily. 

As reported on September 19, the Committee on Financial Services announced that a meeting will be organized in 3 more days (Sept. 24), dubbed “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.”

The members participating in the hearing session include the SEC director Jay Clayton, commissioner Hester Pierce (often referred to as Crypto Mom), together with 3 more commissioners.

Cryptocurrency has been added to the list of topics that will be covered in the discussion. The Committee on Financial Services claimed that the current federal regulations that securities – including stocks, bonds, and investment contracts – have to abide by, regardless of their potential digital nature. 

The discussion will also be deep-diving into Exchange-Traded Funds (ETFs), regardless whether crypto assets are classified as securities or their exemptions from securities laws, together with the hot topic – Libra. 

“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.”

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