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Banking and securities laws affect non-banks too. You can't just act like a bank or issue a security without following the regulations. Facebook isn't actually
by gridlockd 7y ago
Banking and securities laws affect non-banks too. You can't just act like a bank or issue a security without following the regulations.
Facebook isn't actually acting like a bank, but if they claim that their tokens are backed by real assets when they aren't, that's just plain fraud.
- elliekelly 7y agoIt seems to me that Facebook has structured Libra coin to avoid banking & securities laws. By bringing in 20 of his closest Wall Street friends Zuckerberg is attempting to rely on prior SEC commentary that BitCoin is sufficiently decentralized to keep the tokens outside of securities regulation. And even though Libra claims the tokens will be backed by a basket of global currencies they’re still acting like a bank. That basket of currency will fluctuate in value. Libra is basically offering a riskier and unregulated money market account.