A The states congresswoman has said that she will go along working to brand Facebook's planned stablecoin Libra a security.

Facebook and the Libra Association may well have to deal with the SEC

In an April 16 proclamation, Representative Sylvia Garcia (D-TX) denied that contempo updates to Libra'southward whitepaper had substantively changed the yet-to-be-released stablecoin'southward status as a security.

Garcia contends that the newly proposed version of Libra yet derives value from a "basket of currencies" discipline to change from the Libra Clan, which hangs the value of the coin on the work of a third party i.eastward. a security nether the Howey Test. She reasserts that such a token would demand to report to the Securities and Exchange Committee:

"I volition proceed to work to brand sure that the SEC regulates any such asset every bit the security that it is under current securities laws."

Garcia, Libra and managed stablecoins

Rep. Garcia's announcement comes in response to this forenoon's news from the Libra Association that the system had taken steps to placate regulators in its new whitepaper for the Libra token.

Cointelegraph readers may remember Garcia for introducing the "Managed Stablecoins are Securities Act of 2022" in Nov of 2022. Garcia sits on the Business firm Commission on Financial Services.

Following Facebook's June annunciation of Libra, Maxine Waters (D-CA), Chairwoman of the Financial Services Committee, requested a halt on the token's development. This led to a summer of hearings before Congress featuring Facebook's representatives including CEO Marker Zuckerberg.