ambcrypto.com
Facebook’s tryst with privacy and security issues is no myth. Its new cryptocurrency Libra failed to reap a positive response from the US lawmakers. Adding to its woes, Democratic Rep. Maxine Waters called for a “moratorium” in the development of the corporate giant’s cryptocurrency project Libra.
The Congresswoman cited Facebook’s “disregard with the protection and careful use” of its consumer data as the reason behind the decision. House Financial Services Committee Chairwoman, Waters, stated that Facebook has been involved in “unchecked expansion” into the lives of users and before it forays into the crypto industry which lacks clarity in its regulatory framework, the social media site will have to halt its Libra development until regulatory bodies examine its ongoing issues.
Referring to the investigation by the Federal Trade Commission for potential violations relating to user data, the California Democrat asserted,
“We’re now going to move and we’re going to move aggressively and very quickly to deal with what is going on with this new cryptocurrency.”
According to reports, the House Financial Services Committee had requested a hearing on Jule 16 on the Libra coin and its co-creator and Calibra Lead, David Marcus will be present, however, it is unclear as to who would be testifying.
Waters is not the only lawmaker in the country to have expressed concerns about Facebook’s upcoming cryptocurrency. Sen Sherrod Brown [D-OH] had said that Facebook is “too big and powerful” particularly to engage in the “risky” cryptocurrency field. The top Democrat also opined that regulators should monitor the Silicon Valley firm and protect the public and the financial system since the platform is well-known for privacy-attack scandals.