Lawmakers Grilled Facebook's Crypto Chief Over Libra Launch Plans
Facebook executive David Marcus faces intense scrutiny from the House Financial Services Committee regarding the company's planned Libra cryptocurrency. Lawmakers demand regulatory guarantees before the tech giant moves forward with the digital currency project.
Facebook's crypto chief David Marcus faces intense skepticism from lawmakers during a House Financial Services Committee hearing regarding the company's planned Libra cryptocurrency. The questioning proves significantly harsher than the Senate hearing from the previous day, as committee members express deep doubts about Facebook's entry into financial services while the company still grapples with major privacy and election meddling issues.
Several representatives deliver sharp critiques of the digital currency project, with Rep. Brad Sherman making an extreme comparison between Libra's potential consequences and the 9/11 terrorist attacks. Other committee members, including Rep. Nydia Velasquez, emphasize that Facebook cannot simply work out problems as it goes, highlighting a fundamental clash between Silicon Valley's fast-paced culture and the cautious nature of financial regulation.
Lawmakers repeatedly press Marcus to halt the Libra project until policymakers establish appropriate regulatory frameworks, but Marcus only commits to waiting for specific regulatory approvals. Chairwoman Maxine Waters outright rejects this response as insufficient, while Rep. Carolyn Maloney suggests a regulated pilot program for one million users as a potential compromise before the hearing cuts off.