For months now, Libra, the stablecoin project from Facebook, has been mired in one controversy or the other. However, a new report could throw the asset’s future operation into further disarray.
On November 4, popular news medium Reuters reported that the International Organization of Securities Commissions (IOSCO), a global securities and futures trading regulator, is mulling over the prospect of adding stablecoins into existing securities policies.
Minimizing Risks by Enforcing Securities Laws
Citing a report from Chairperson Ashley Alder, Reuters reports that the agency has come to recognize the benefits that stablecoins could bring, while not being oblivious of their potential risks. In a statement, Alder reportedly argues that after thorough analysis, the regulator has found that stablecoins possess certain features of typical securities. So, to provide clarity on their operation, imposing securities laws that govern operational aspects such as disclosures, registration, and reporting might be the best way forward. Facebook has brought on much scrutiny for stablecoins. While many of these assets have been operating unencumbered (or at the very least, with the same level of non-interference as other crypto assets), Facebook’s Libra could end up being more of a curse than a blessing.
The Libra Barrage Continues
The prospect of being subjected to securities laws could undermine Libra, but considering the successive waves of attacks that the asset has endured since the very day it was launched, this isn’t new territory. Back at home, the stablecoin has been grilled left and right, with three Congressional testimonies and a boatload of scrutiny leaving the asset’s hope for a launch hanging by a thread.
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Jimmy Aki
Based in the United Kingdom, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills, having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for blockchain regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.
Based in the United Kingdom, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills, having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for blockchain regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.
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