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House Takes Up Pushback on Facebook's Libra

Jul 18, 2019
Facebook continued to receive congressional blowback on its proposed Libra cryptocurrency during the second hearing of the week featuring Facebook executive David Marcus.

At the House Financial Services Committee hearing, Chairman Maxine Waters (D-Calif.) called on the social media giant to suspend its work on the digital currency until Congress enacts new standards, while Ranking Member Patrick McHenry (R-N.C.) raised questions about Facebook's handling of consumer data. That came a day after members of the Senate Banking Committee questioned whether consumers could trust Facebook with their finances.

In letters to the committees ahead of their respective hearings, ICBA said the proposed digital currency would pose threats to consumer privacy and financial stability while creating a new avenue to money laundering. ICBA called for appropriate regulations comparable to the many rules that apply to payments products and services offered by the banking system.

Facebook has announced plans to launch Libra next year, though members of Congress and regulators are working to develop plans on how to regulate the cryptocurrency or even halt its release.

Read ICBA Release