In a letter to Facebook executives, Chair of the House Financial Services Committee Maxine Waters (D-CA) and four Democratic representatives requested an immediate moratorium of the proposed blockchain-based cryptocurrency Libra and the digital wallet Calibra. The letter follows previous requests for a moratorium.
According to the letter, the representatives are seeking to hold public hearings on the risks and benefits of these activities and whether additional legislation is necessary to address issues that may be raised. The representatives stated that the proposed development raises "serious privacy, trading, national security, and monetary policy concerns . . . ." The representatives warned that these products raise concerns for Facebook users, as well as the broader global economy, given that these products may create an "entirely new global financial system that is based out of Switzerland . . . to rival U.S. monetary policy and the dollar." Furthermore, the representatives state that the risks these products pose are "even more glaring" considering the Cambridge Analytica scandal, in which a political consulting firm used Facebook users' data to influence voting behavior in the 2016 election.
Facebook unveiled plans for "Libra," a new blockchain, digital currency and smart contract platform intended to reach a global audience.
In a Bloomberg Law article, Joseph Moreno and Keith Gerver considered the potential effects that the Facebook data-sharing controversy may have on U.S. data privacy standards.
The Federal Trade Commission is investigating Facebook's privacy practices following reports that a data collection firm may have misappropriated the personal information of over 50 million users.
The Bank for International Settlements urged regulators to implement policies and regulations that address the emergence of "big tech" in financial markets.