Facebook Has Been Officially Requested by House Legislators to Put Libra Cryptocurrency Project on Hold

House Democrats are asking Facebook to stop the progress of its suggested cryptocurrency project Libra, as well as its digital wallet Calibra, till Congress and regulators get time to inspect the potential risks it presents to the global financial system.

Rep. Maxine Waters (D-CA), the chairwoman of the House Financial Services Committee, referred at a move like this last month immediately after the project was declared. Waters’ letter was sent to Facebook’s CEO Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg, and Calibra CEO David Marcus. The letter orders that request from a few weeks ago. The letter has been also endorsed by House Finance’s subcommittee leaders.

Water mentioned that in case products and services like Libra or Calibra are left poorly controlled and without sufficient supervision, they could pose intrinsic risks that imperil the U.S. and global financial stability. These exposures could be utilized and complicated by bad actors, as other cryptocurrencies, exchanges, and wallets have been in the past.

Skepticism of the project isn’t only expressed in the Democrat-controlled House, either. Senate Banking Chair Mike Crapo (R-ID) due for a hearing with Marcus for July 16th, referred to the concerns over the currency and the potential threats for data privacy it poses. Waters’ committee would also hold a hearing on the project.

The letter even stated that as Facebook is already in the hands of more than a quarter of the world’s population, it is indispensable that Facebook and its partners immediately cease enforcement plans until regulators and Congress have a chance to examine these risks and take action.

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