The congressional hearings reveal
that several politicians are not convinced about the safety aspects related to
the cryptocurrency project. They have
grilled the social media giant by questioning them on privacy and trust-related
issues. However, Facebook has been
stating that Libra is ready to work in compliance with regulators and that they
are prepared to discuss the possible framework.
A draft bill titled, “Keep Big
Tech out of Finance” has come out recently.
The document read: “A large
platform utility may not establish, maintain, or operate a digital asset that
is intended to be widely used as medium of exchange, unit of account, store of
value, or any other similar function, as defined by the Board of Governors of
the Federal Reserve System.” The bill, according to experts, is a stunt
move towards the Libra.
Another question that has
recently come up is whether the US government has the power to prevent the
coming of Libra. The regulatory movement
in the US is currently very hostile towards Libra.
The coming of Libra is a threat to their sovereign currencies and a celebration to smaller cryptocurrencies like the TCAT tokens.
Sen. Sherrod Brown stated, Libra
is a “recipe for more corporate power over markets and consumers.”
Tech giants are now lobbying
spenders. Despite the scrutiny, the
business operations have continued to be intact of note, Facebook’s $5bn fine
from the FTC.
Stylianou stated, “A complete ban
like the one proposed by the bill is an extreme and untimely measure.”
There are other laws which place
a structural and non-structural separation between banking and non-banking
activities. This cannot be applied to Libra as in the first place; it is not
clear about the kind of financial instrument the Libra is set to be.
William McCormick, CEO at Pure
Knot stated, “The last couple of years of cryptocurrency development has
provided a blueprint for Facebook to follow and it is up to them if they take
it on board.”
John Todaro, director of research
at Tradeblock, stated, “Facebook is still heavily subject to government laws
and regulations around data collection, privacy, and taxation. “
Kris Marszalek, stated, “It seems
there is only one thing the US Gov and Facebook agree on: cryptocurrency is the
future.” The CEO further noted that he
was confident about Facebook capturing this opportunity in complete compliance.
Lawmakers are eventually
increasing the pressure on Facebook to halt their Libra operations. It now seems
that the government needs to understand the crypto before the launch.