Facebook Cryptocurrency Not Trusted by Lawmakers

Democrats

• In May 2019, Sen. Sherod Brown questioned how Facebook would protect the privacy of its cryptocurrency users. He also demanded clarity on Facebook’s intentions for its crypto project.
• In June 2019, Sen. Brown said Facebook was “too big and too powerful” and said the company could not be allowed to run a risky new cryptocurrency without proper oversight.

• In June 2019, Chair of the House Financial Services Committee Maxine Waters called on Facebook to pause its development of a digital coin, citing the company’s past disregard for data protection.
• In June 2019, Rep. Katie Porter said she was concerned Facebook’s expansion into consumer finance would give the company monopoly power. Porter also called out Facebook for failing to protect the privacy of personal data it already controls.

• In July 2019, the top 5 democrats on the House Financial Services Committee, Rep. Waters, Rep. Maloney, Rep. Clay, Rep. Green and Rep. Lynch, called on Facebook to cease its plans to launch a cryptocurrency. The five reps said Facebook’s failure to cease would lead to a financial entity that was too big to fail.

• In July 2019, Sen. Brown called on the Fed to protect consumers from Facebook’s cryptocurrency venture, saying “we cannot allow giant companies to assert their power over critical public infrastructure.”

• In October 2019, Sens. Brown and Schatz urged Visa, Mastercard and Stripe to not participate in Facebook’s cryptocurrency project. Sen. Brown said it would be unconscionable for financial companies to aid Facebook in monopolizing our economic infrastructure.
• In October 2019, Democratic members of the House Financial Services Committee criticized Facebook’s cryptocurrency venture during testimony by Mark Zuckerberg.
  • Rep. Gregory Meeks criticized Facebook for not doing more to support existing infrastructure to help the unbanked.
  • Rep. Al Green criticized the venture for being made up of only white men and lacking diversity.
  • Reps. Cleaver, Maloney and Sherman were concerned about Libra being unable to protect against money laundering, terrorist financing and other criminal activity.
  • Rep. Bill Foster criticized the project for potentially allowing anonymous transactions and making it harder for fraudulent or mistaken transactions to be reversed.
  • Other Reps. Expressed mistrust of Facebook, including Reps. Garcia and Vargas who shot down claims Zuckerberg made about Facebook being independent from its crypto venture.
  • Rep. Madeline Dean questioned why, given its history, Facebook should be trusted to create the world’s largest bank, “what really amounts to a shadow...government.”
  • Rep. Nydia Velazquez questioned why Facebook should be trusted on protecting consumer data. She also claimed Zuckerberg had previously lied about merging data between WhatsApp and Facebook and said directly to him, “have you learned that you should not lie?”

• In October 2021, Senators Schatz, Brown, Blumenthal, Warren, and Smith called on Facebook to stop revived efforts to launch a cryptocurrency. The senators said Facebook couldn’t be trusted to manage digital currency when its ability to keep consumers safe had already proven insufficient.
• The senators also attacked Facebook for breaking its commitment to not launch Diem before it was approved by regulators.

Republicans

• In May 2019, Sen. Mike Crapo, then-chair of the Senate Banking Committee, questioned how Facebook would protect the privacy of its cryptocurrency users. He also demanded clarity on Facebook’s intentions for its crypto project.

• In June 2019, the top Republican on the House Financial Services Committee, Rep. Patrick McHenry, also called for a hearing on Facebook’s cryptocurrency venture.
• In June 2019, Sen. Josh Hawley blasted Facebook for trying to expand its monopoly by entering banking and said he didn’t trust them to handle money.

• In July 2019, President Trump argued Libra would have little standing or dependability and said Facebook should be subject to banking regulations.
• In July 2019, Trump’s Treasury Secretary Steve Mnuchin also warned Libra was a national security risk and could be used to fund terrorism.
• In July 2019, Rep. Sean Duffy and Sen. Tom Cotton speculated Facebook could prevent people it didn’t like from using its cryptocurrency or prevent people from buying things it didn’t like, such as guns or a Breitbart subscription.
• Sen. Cotton also worried Facebook’s cryptocurrency could impact the ability of the US to impose effective sanctions on countries like Iran.
• In July 2019, Sen. Martha McSally blasted Facebook for its repeated violations of user privacy, said “I don’t trust you guys” to be involved in currency.
• In October 2019, Rep. Lance Gooden called out Facebook and said the company’s previous testimony on its digital currency plans had left Congress with “more questions than answers.”
• In October 2019, Rep. Ann Wagner said she was concerned because so many companies had abandoned Facebook’s cryptocurrency efforts, said that fact cast doubts as to whether Facebook was up to the task of meeting regulatory standards.
• In October 2019, Rep. Blaine Luetkemeyer said he was concerned Facebook’s cryptocurrency could diminish the dollar in favor of another currency, like China’s Yuan. At the same time. Rep. Steve Stivers said he was concerned Facebook’s cryptocurrency could undermine currencies across the globe.
• In October 2019, Rep. Scott Tipton said he was concerned whether Facebook could be trusted to put in place measures to secure personal information.

Regulators And Foreign Officials

• In July 2019, central bankers from Britain, France, The European Central Bank, Singapore, and China all voiced concerns about Facebook’s cryptocurrency.