Yesterday, U.S. Congresswoman Sylvia Garcia said she would make sure that the Securities and Exchange Commission regulates Facebook’s Libra as a security. Also yesterday, the Libra Association published a second whitepaper, toning down several features to appease regulators. It has also applied for a payments license with the Swiss Financial Markets Supervisory Authority (FINMA).
The Libra Association has suffered quite a few setbacks since its initial launch, with high profile members such as Visa, Mastercard, eBay, and Paypal withdrawing from the project apparently based on regulatory concerns. Central banks and regulators also have reservations that, with Facebook’s 2.7 billion audience, Libra could challenge sovereign currencies and destabilize the current financial ecosystem. Additionally, there are antitrust concerns.
“There are simply too many questions left unanswered regarding why Facebook is even developing a cryptocurrency and how it will affect the global economy and consumers,” said Garcia in her statement.
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