A few hours after Facebook announced its plan for a global cryptocurrency project, a prominent Democrat calls for Facebook to plan until Congress and regulators have the opportunity 39 to study the potential risks.
"With the announcement of the creation of a cryptocurrency, Facebook continues its uncontrolled expansion and extends its reach to the lives of its users," said the chair of the House Financial Services Committee, Maxine Waters (D-CA) in a statement. "Given the troubled past of the company, I request that I accept a moratorium on any breakthrough in the development of a cryptocurrency until Congress and regulators have the opportunity to To look at these problems and to act. "
Waters comments came shortly after the Republican top Patrick McHenry (R-NC), committee member, wrote to Waters to request a hearing on Facebook's new initiative. "We know that there are many unanswered questions about the scope and scale of the project and how it will comply with our global financial regulatory framework," McHenry said. "It is our duty as policymakers to understand the Balance project, we need to go beyond rumors and speculation and provide a forum to evaluate this project and its unprecedented potential impact on the global financial system."
It is unclear when such a hearing will take place, although Waters has stated that Facebook leaders should testify before the committee on the issue. More than a year ago, Facebook CEO Mark Zuckerberg met in front of Congress for the first and only time to discuss the fallout from the Cambridge Analytica corporate scandal.
Other lawmakers are also asking for control of Facebook's plans. Sen. Sherrod Brown (D-OH) said in a statement today it would appeal to the government's largest financial "guardians" to evaluate the company's efforts in cryptography and blockchain.
"Facebook is already too big and too powerful, and it has been used with so much power to leverage users' data without protecting their privacy," said Brown. "We can not allow Facebook to run unguarded new risky cryptocurrency on a Swiss bank account.I call our financial custodians to look into this closely in order to make sure that the users are protected. "
A Facebook spokesperson responded to requests in a statement to The edge saying, "We look forward to answering legislators' questions as this process moves forward."