For months now, Libra, the stablecoin project from Facebook, has been mired in one controversy or the other. However, a new report could throw the asset’s future operation into further disarray.
On November 4, popular news medium Reuters reported that the International Organization of Securities Commissions (IOSCO), a global securities and futures trading regulator, is mulling over the prospect of adding stablecoins into existing securities policies.
Minimizing Risks by Enforcing Securities Laws
Citing a report from Chairperson Ashley Alder, Reuters reports that the agency has come to recognize the benefits that stablecoins could bring, while not being oblivious of their potential risks. In a statement, Alder reportedly argues that after thorough analysis, the regulator has found that stablecoins possess certain features of typical securities.
So, to provide clarity on their operation, imposing securities laws that govern operational aspects such as disclosures, registration, and reporting might be the best way forward.