Facebook will address Committees in the Senate on Tuesday and House of Representatives on July17 about its Libra cryptocurrency.
Jerry Brito, Executive Director of Coin Center, and Kristin Smith of lobbyist firm Blockchain Association, told The Block that congressional staffers on Capitol Hill are also thinking about examining whether or not Libra might fit the definition of a security, equity derivative, or ETF. Per white papers on the project written by Facebook, Libra will be backed by a basket of currencies and other securities. The reserves of Libra will be managed by a consortium of companies, collectively called The Libra Association, each of which will receive a percentage return for their role as so-called “validator node operators.”
Some of the questions Congress have include: whether Libra is an ETF; if it introduces systematic risk to the economy; and why it is based in Geneva, Switzerland.