Rep. Sylvia Garcia and Rep. Lance Gooden Introduce the Managed Stablecoins are Securities Act of 2019

Statement

Congresswoman Sylvia Garcia (D-TX) and her colleague Congressman Lance Gooden (R-TX) introduced the Managed Stablecoins are Securities Act of 2019. This piece of legislation would protect consumers against certain cryptocurrencies, such as Facebook Libra Project. The bill would clarify that "managed stablecoins" are securities under the Security Exchange Act of 1934 and thus regulated by the Security and Exchange Commission.

In August, Representatives Garcia and Gooden participated in bipartisan conversations with Swiss lawmakers and financial regulators about their concerns with cryptocurrencies such as Facebook's Libra Project. This bill is an example of bipartisanship at its best, two freshmen members of the Texas Congressional delegation from both sides of the aisle coming together for the good of consumers in Texas and across the country. Both members sit on the House Committee on Financial Services.

Congresswoman Sylvia Garcia (D-TX) Statement:

"Managed stablecoins, such as the proposed Libra, are clearly securities under existing law. This legislation simply clarifies the statute to remove any ambiguity. Bringing clarity to the regulatory structure of these digital assets protects consumers and ensures proper government oversight going forward.

I am particularly pleased that Texas Freshmen Representatives can work across aisle to introduce this bipartisan legislation. We will continue to work with stakeholders and consumers to move this important bill."

Congressman Gooden (R-TX) Statement:

"It's the responsibility of Congress to clarify the regulatory framework that will apply to stablecoins, especially now that mainstream institutions are offering them to consumers. In what are called 'managed stablecoins', we have trusted brands marketing digital assets to consumers as secure and stable.

"Everyday investors need to know they can trust the issuers behind their financial assets. This bill would bring them the security they deserve by applying the laws we use to regulate financial securities to this new breed of digital currencies."

Source