US Congress Chairwoman Demands Halt to Facebook's Libra Cryptocurrency
A high-ranking US Congress member calls for a moratorium on Facebook's Libra project until lawmakers can properly review the cryptocurrency's privacy and regulatory implications. Facebook indicates it plans to move forward despite the unresolved privacy concerns.
US Congresswoman Maxine Waters calls for a immediate moratorium on the development and launch of Facebook's Libra cryptocurrency. As the Chair of the House Financial Services Committee, Waters asks the tech giant to pause its crypto plans until Congress and regulators have the opportunity to examine the project thoroughly. She cites Facebook's troubled past regarding user data as a primary reason for this heightened scrutiny.
The request currently lacks widespread support within the American Parliament, meaning the Libra project could proceed as planned and potentially trigger a confrontation with lawmakers. A Facebook spokesperson states that the company looks forward to answering policymakers' questions, indicating that they do not intend to halt development. This stance sets the stage for possible clashes given Facebook's history of disputes with congressional committees.
Lawmakers express serious concerns about how Facebook handles financial transaction data, fearing that combining this data with their existing social network information worsens existing privacy issues. Facebook attempts to address these fears by stating that a separate subsidiary called Calibra handles the transactions and keeps financial data isolated from the main social network. Despite Calibra's registration with FinCEN as a compliant financial services company, critics like Senator Sherrod Brown continue to worry that Facebook is simply becoming too big and too powerful.