Things don’t appear to be looking good for Facebook’s cryptocurrency project, Libra. Late last month, we had reported that chairwoman of the US House Committee on Financial Services, Chairwoman Maxine Waters has announced the date for a hearing.
The hearing titled, ‘Examining Facebook’s Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System’ will be held on July 17 2019.
Previously, we had also reported that Waters had said that the company should halt the project, so that Congress and regulators can review the issue. Waters, in a statement, to news portal Reuters had said, “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. 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.”
However now, Facebook CEO has responded saying he hopes for a collaborative process, which will help the project move forward. News portal, Be In Crypto stated that David Marcus, the CEO of Libra wrote to lawmakers, lawmakers stating that he was open to testifying before them in order to clarify their doubts about the project. He also said that he understood the magnitude of the project and the effect it may have if not properly regulated. That is why, Marcus added, he wanted to work in unison with the regulators, central banks, and lawmakers.
This roadblock is concerning, because Facebook has already been dotting the i’s and crossing the t’s since it announced the project. Recently, the company had met the United States regulator the Commodity Futures Trading Commission (CFTC).
However, at the time, the chairman, J. Christopher Giancarlo was quoted as saying, “We’re very interested in understanding it better.” However he also said so far there have been no requests put forth for regulatory clearance. Giancarlo further added, “We can only act on an application, we don’t have anything in front of us.”
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