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Congresswoman Maxine Waters’ Committee holding a crypto hearing with SEC next week

Yogita Khatri

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.

The hearing will be live webcast here.