Maxine Waters, the head of the US House of Representatives’ Financial Services has asked Facebook to stop its crypto project. Per Waters, Libra is another unchecked expansion by the firm. She also called on executives to testify on the firm’s issues in front of the committee.
In a statement, Waters noted,
Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.
Representative Patrick McHenry replied to Waters’ statement saying,
It is incumbent upon us as policymakers to understand Project Libra. We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the global financial system.
Facebook Data Protection Issues
Waters added that,
Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. It has also exposed Americans to malicious and fake accounts from bad actors.
Also, she mentioned that Facebook is under a Federal Trade Commission consent order for misleading consumers. The firm has also failed to keep user data private. On top of this, Waters said that the government has sued the firm for going against fair housing laws.
Waters believes that Facebook will expose its users to the crypto market’s risks if it does not shut down the Libra project. At the moment, the crypto sector lacks rules that protect investors, consumers, and the economy. According to Waters, this is a serious problem that needs watchdogs to take strict measures.
Waters made her statement hours after the release of Libra’s white paper. Prior to this, Facebook gathered leading firms that pumped $10 million each in its crypto project. These firms formed the Libra Association, a group that will govern the Libra coin. As reported, the list includes global firms such as Visa and Uber.
This news comes a month after the US House of Representatives’ Financial Services Committee passed a decision to form a FinTech task force.
Per the official announcement,
The new task force would, “examine the current legal framework for fintech, how fintech is used in lending and how consumers engage with fintech”.
Do you think Facebook will hear Waters’ call to halt the creation of Libra? Let us know in the comments below.