The Banking Committee of United States Senate set the hearing on Facebook Crypto coin on 16 July published in a report on 19 June.
The world largest social media firm Facebook has launched the whitepaper of its crypto project Libra on 18 June. Libra is a stablecoin which is powered by Blockchain technology, according to the whitepaper the coin is backed by multiple fiat currencies.
After the release of the crypto project, U.S regulators show their concerns about the project effect on financial stability. Rep. Maxine Waters, chairwoman of the United States House of Representatives’ Financial Services Committee ordered that Facebook halt all the developments of the Libra project, while regulators investigate the project:
“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.”
Banking Committee will hold a hearing against Facebook named “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations” on 16 July.
The head of U.S Federal Reserve Jerome Powell said in a speech that Facebook should have consulted regulators prior to the project:
“Facebook has made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us.”
Facebook Crypto project Libra gets investment from Uber, Paypal, Visa, Mastercard and other leading firms. Facebook will launch the Libra coin Blockchain in Mid 2020, that’s a long way and Facebook has to answer all the regulations authorities yet.
Other countries regulators have also expressed doubts and concerns with the Facebook Crypto project Libra.