Yes, but if I'm not mistaken bitcoin is considered a security under U.S. law, so this proposal makes sense. In fact I thought *all* cryptocurrencies, including ico tokens, are considered securities. Why would libra be any different? Also if this is the extent of how the U.S. gov't plans to regulate libra, it isn't a deal killer in my opinion and I don't think this would keep it from launching.
Zukerberg was arguing that as Libra was pegged to fiat currencies and was a stable coin, it was a currency. Whereas bitcoin, being unpegged to anything, was a security.
So it looks like Congress is fixing a loophole.
No one is going to use Libra instead of dollars if it is a security and you are liable to capital gains tax everytime you use Libra, but not when you use plain old dollars.