United States House of Representatives Committee on Financial Services will hold a hearing with Securities and Exchange Commision's (SEC) Chairman, Jay Clayton and four other SEC commissioners to discuss cryptocurrency among other topics
Federal securities laws apply to Securities
On Sept. 19, the Committee on Financial Services published a memorandum announcing a hearing scheduled for Sept. 24, dubbed “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.”
The hearing will involve the Securities and Exchange Commission chairman Jay Clayton, commissioner Hester Pierce also known as 'Crypto Mom', commissioner, Commissioner Robert J. Jackson Jr. Commissioner Elad L. Roisman and Commissioner Allison Herren Lee.
The scheduled hearing will among other topics focused on Cryptocurrency, which the committee outlines that regardless whether an asset is digital or not, the securities laws applies to securities, including; stocks, bonds and investment contracts. Additionally, the Exchange-Traded Funds (ETFs), being it a digital asset or not are exempted from securities law.
Pointing at Facebook's Libra, the document states:
“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.”