Rep. Maxine Waters Requests Halt of Facebook to on the Libra cryptocurrency
The head of the United States House of Representatives Committee on Financial Services Maxine Walters has requested that Facebook to stop development of its new Libra cryptocurrency until it is possible to hold hearings. The request from Waters came hours after Libra had been unveiled by Facebook.
“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,”
Rep. Waters clarified in her statement.
Rep. Patrick McHenry, also from the Committee on Financial Services, had asked Waters earlier in the day to call the hearing.
“While there is great promise for this new technology in fostering financial inclusion and faster payments, particularly in the developing world, we know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework,”
“We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the financial system.”
Senate Banking Committee ranking member Sherrod Brown also expressed his views on Twitter stating “We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight.”
Last month, the Senate Banking Committee wrote a letter to Facebook asking a number of issues about how the project would function and how Facebook would manage user data.