US Congress schedules SEC meeting to discuss cryptocurrencies

The United States Congress has arranged a meeting with officials from the Securities and Exchange Commission (SEC) to discuss the status of cryptocurrencies.

SEC chair Jay Clayton will be among the five commissioners to meet with members of Congress, according to an announcement on Thursday.

The discussion will be based around whether federal securities laws apply to digital assets, as well as the viability of a Bitcoin ETF.

One of the major talking points will also be focused around the anticipated launch of Facebook’s Libra project and its status as a potential security.

The document states that: “The Libra Investment Token could amount to a security since it is intended to be sold to investors to fund start-up 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.”

Libra was heavily scrutinised during a recent US Senate hearing due to its decision to base itself in Switzerland as well as it potentially having a negative impact on the US dollar and the economy.

The project’s co-creator, David Marcus, hit back at criticism earlier this week in a series of tweets.

He said: “Libra will be backed 1:1 by a basket of strong currencies. This means that for any unit of Libra to exist, there must be the equivalent value in its reserve. As such there’s no new money creation, which will strictly remain the province of sovereign Nations.”

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