House Democrats request Facebook to put Libra Cryptocurrency project and Calibra on hold until Congress and other lawmakers do not investigate the risk it poses it to the global financial system said in a press release by the U.S. House Committee.
The Top House Democrat Rep. Maxine Waters (D-CA) hinted the move last month. “With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,” House Financial Services Committee Chairwoman Maxine Waters (D-CA) said in a statement. “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”
She sent the letter to CEO Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg, and Calibra CEO David Marcus which was signed by House Finance’s subcommittee leaders. The press release says “Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action,” the lawmakers wrote. “During this moratorium, we intend to hold public hearings on the risks and benefits of cryptocurrency-based activities and explore legislative solutions. Failure to cease implementation before we can do so risks a new Swiss-based financial system that is too big to fail.”
It also says that they are requesting Facebook to agree with the moratorium as it is intended to rival the U.S. monetary policy and also raises national security concerns. In the venture by Facebook, the company enlisted 27 companies that from Libra Association that includes financial players such as Mastercard, Paypal, and Visa, and technology giants, like Uber, Lyft, and Spotify.
The lawmaker’s statement reads “Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action”