Fb CEO Mark Zuckerberg will defend the Libra cryptocurrency challenge earlier than U.S. lawmakers later this month.
The Home Monetary Companies Committee introduced Wednesday that Zuckerberg will testify on Oct. 23 throughout a listening to titled “An Examination of Fb and Its Affect on the Monetary Companies and Housing Sectors.” Zuckerberg would be the solely witness.
Whereas particulars had been sparse, Wednesday’s press launch famous that Committee Chairwoman Maxine Waters (D-Calif.) has drafted the “Preserve Large Tech Out of Finance Act.” Beforehand, Waters had known as for Fb to halt growth of Libra till lawmakers’ issues had been addressed.
“The draft laws prohibits giant platform utilities, like Fb, from turning into chartered, licensed or registered as a U.S. monetary establishment,” Wednesday’s launch stated, including:
“The invoice additionally prohibits giant platform utilities from establishing, sustaining, or working a digital asset that’s supposed to be extensively used as medium of alternate, unit of account, retailer of worth, or some other comparable perform as outlined by the Federal Reserve.”
This month’s listening to would be the third held by Congress: the Home Monetary Companies Committee and the Senate Banking Committee each mentioned Libra in July 2019. Fb blockchain lead David Marcus testified on the potential advantages of the challenge on the time.
Throughout these hearings, lawmakers had been brazenly skeptical about Fb’s efforts, pointing to its previous monitor document with knowledge privateness and different points as issues.
The regulatory backlash round Libra has additionally involved Fb’s launch companions. PayPal, which Marcus beforehand led, pulled out of the 28-member governing affiliation final week. Visa and Mastercard are additionally reportedly involved in regards to the attainable impression of continuous with the challenge.
Senators Brian Schatz and Sherrod Brown, each members of the Banking Committee, went so far as to warn the CEOs of Visa, Mastercard and Stripe on Tuesday, writing that collaborating in Libra Affiliation might open them as much as additional regulatory scrutiny.
CoinDesk has reached out to Fb for remark and can replace the piece if we hear again.
Mark Zuckerberg picture through Frederic Legrand / Shutterstock