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Source: Fed Chair Says Facebook Needs to Satisfy Regulatory Concerns Regarding Libra<\/a><\/em><\/p>\n Federal Reserve<\/a>\u00a0Chair Jerome Powell said there needs to be broad satisfaction with the way\u00a0Facebook<\/a>\u00a0is handling regulatory concerns regarding its forthcoming\u00a0stablecoin<\/a>\u00a0Libra<\/a>. Powell gave his comments in a\u00a0hearing<\/a>\u00a0before the House Financial Services Committee on July 10.<\/p>\n Rep. Steve Stivers asked Powell during the meeting, \u201cif Facebook can\u2019t sufficiently answer your questions about\u00a0anti-money laundering<\/a>,\u00a0Know Your Customer<\/a>, what would your message be to the\u00a0banks<\/a>\u00a0that provide banking to Facebook, and what would your advice to Facebook be?\u201d Powell replied:<\/p>\n \u201c \u2026 I just think it cannot go forward without there being broad satisfaction with the way the company has addressed\u00a0money laundering<\/a>, all of those things. The number of concerns that I list at the beginning, data protection, consumer\u00a0privacy<\/a>, all of those things will need to be addressed very thoroughly and carefully.\u201d<\/p><\/blockquote>\n Powell also discussed how the project falls outside traditional regulatory bounds, highlighting the scale of the proposed\u00a0cryptocurrency<\/a>\u00a0project:<\/p>\n \u201cI think it\u2019s something that doesn\u2019t fit nearly or easily within our regulatory scheme. It does have potentially systemic scale.\u201d<\/p><\/blockquote>\n Chairwoman Maxine Waters also questioned Powell on whether the Fed has concerns about monetary policy with respect to Libra. Powell answered similarly, saying:<\/p>\n \u201cLibra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability. These are concerns that should be thoroughly and publicly addressed before proceeding.\u201d<\/p><\/blockquote>\n Powell previously testified on Libra in a\u00a0press conference<\/a>\u00a0on June 19. When asked about the Fed\u2019s role in regulating Libra, Powell suggested that they would not have direct authority, but would nonetheless be influential:<\/p>\n \u201c\u2026 we don\u2019t have plenary authority over cryptocurrencies as such. They play into our world through consumer protection and money laundering and things like that. But, I would say that \u2026 through international forums \u2026 we have significant input into the\u00a0payment<\/a>\u00a0system and, as you know, play an important role in the payment system here in the\u00a0United States<\/a>.\u201d<\/p><\/blockquote>\n As previously\u00a0reported<\/a>\u00a0by Cointelegraph, Maxine Waters, members of the House of Representatives Committee on Financial Services and a number of advocacy groups have called for a moratorium on Libra\u2019s development.<\/p>\n David Marcus, the head Libra\u2019s corresponding digital\u00a0wallet<\/a>\u00a0service\u00a0Calibra<\/a>, has now replied both via a public\u00a0Facebook post<\/a>\u00a0and in a letter to Waters and the committee to assuage their concerns and\u00a0promise<\/a>\u00a0cooperation.<\/p>\n","protected":false},"excerpt":{"rendered":" Source: Fed Chair Says Facebook Needs to Satisfy Regulatory Concerns Regarding Libra Federal Reserve\u00a0Chair Jerome Powell said there needs to be broad satisfaction with the way\u00a0Facebook\u00a0is handling regulatory concerns regarding its forthcoming\u00a0stablecoin\u00a0Libra. Powell gave his comments in a\u00a0hearing\u00a0before the House Financial Services Committee on July 10. Rep. Steve Stivers asked Powell during the meeting, \u201cif … Continue reading Fed Chair Says Facebook Needs to Satisfy Regulatory Concerns Regarding Libra<\/span>