Facebook’s CEO, Mark Zuckerberg is set to testify in US Congress over the Libra project. CoinDesk reports that Zuckerberg will face the Congressional Financial Services Committee on Oct.23 to shed light on Facebook’s impact on the financial services as well as housing sectors. As per the committee, Zuckerberg will only be involved as a witness.
Although details about the hearing remain scarce, a press statement released by the committee’s chairperson Maxine Waters indicated that she had come up with a bill known as “Keep Big Tech Out of Finance Act” hence the need for Zuckerberg to testify. Recently, Waters had said that Facebook should hold on the Libra project until all the concerns from the lawmakers were fully addressed.
As per the press release, the draft bill wants giant platform utilities such as Facebook be prohibited from acquiring a charter, license or even being registered as a financial institution within the US. In addition, the bill is also seeking the prohibition of big platform utilities from starting, maintaining or operating any form of a digital asset that can be utilized as a medium of exchange, a store of value, unit of account or a similar function as given by the Federal Reserve.
The hearing at the end of the month will be the third one to be held by Congress. In July this year both the House Financial Services Committee as well as Senate Banking committee both held a hearing on Libra project. At that time, Facebook’s blockchain head David Marcus was questioned on the probable benefits of the Libra project.
During the previous hearings, the lawmakers were concerned about the Libra project citing Facebook’s previous handling of data among other issues.
The regulatory issues confronting the Libra project has been a major concern to key partners. PayPal officially announced it was pulling out of the 28-member governing association late last week. Similarly, Mastercard and Visa are allegedly analyzing the impact of their continuity with the project.
The lawmakers have in the recent past warned the CEOs of the participating Libra partners that their companies could be at risk of extra regulatory scrutiny.
Keep it here for more updates on the hearing.