Representatives Sylvia Garcia (D-TX) and Lance Gooden (R-TX) formally introduced the Managed Stablecoins are Securities Act of 2019 on Thursday. As its name suggests, the bill would define managed stablecoins as securities subject to the provisions of the Securities Act of 1933.
As DCEBrief reported when a discussion draft of the bill was first published last month, the bill is in part intended to counter stablecoin issuers’ contention that their coins are not securities:
It is the sense of Congress that (1) digital assets, known as managed stablecoins, are investment contracts and therefore are securities within the meaning given the term in section 2(a) of the Securities Act of 1933; and (2) because issuers of managed stablecoins nevertheless maintain that managed stablecoins are not securities, it is appropriate for Congress to provide clarity by amending statutory definitions of the term security to include managed stablecoins.”
In a statement on her official website, Garcia expressed her appreciation for her fellow Texas representative’s bipartisan cooperation, and noted:
“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.”
Congressman Gooden stressed Congress’ role in clarifying the regulatory framework for stablecoins, “especially now that mainstream institutions are offering them to consumers.”