Facebook’s crypto Libra hits a snag: U.S congress and regulators must examine it first

Facebook's new cryptocurrency was and is still the biggest headline in both the cryptocurrency and the financial industries since the launch of the whitepaper on June 18. The social media has decided to make a grand entrance into the cryptocurrency sphere by introducing a digital asset that can be used for a wide range of things including money transfers and commerce.

However, barely a day after the white paper release, the stablecoin, Libra has already started getting pushback from governments and lawmakers in both the United States and Europe.  The House Financial Services Committee Chairwoman Maxine Waters has called upon Facebook to put the development of Libra on hold until the Congress and other regulators examine its scope. At the same time, according to Bloomberg other lawmakers have requested and even raised questions regarding Libra’s oversight.

Waters said in a statement:

“Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data.” She continued “With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.”

Patrick McHenry, a top Republican who sits on the financial services panel urged Waters to call for a hearing. According to him Congress must go “beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the global financial system.”