Stablecoins Are Financial Securities

WASHINGTON, D.C. - Congressman Lance Gooden (R-TX) joined his colleague Congresswoman Sylvia Garcia (D-TX), who introduced legislation to reduce the consumer risks associated with owning certain cryptocurrencies. The Managed Stablecoins are Securities Act of 2019 would provide a legal definition for cryptocurrencies known as “managed stablecoins” and would establish oversight thereof under existing securities laws.

In August, Congressman Gooden and Congresswoman Garcia took part in official dialogues with Swiss lawmakers and financial regulators. Their discussion was focused on the potential impacts of Facebook's cryptocurrency project, Calibra. Both freshman members sit on the House Committee on Financial Services.

Click here for the full text: Managed Stablecoins are Securities Act of 2019.pdf
 

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."

Congresswoman 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.”