A U.S Congress lawmaker, Rep. Sylvia Garcia, called out Libra following the latest changes implemented in its new updated whitepaper claiming the changes do not address the concerns raised during the hearing.
According to Garcia’s statement, Libra’s plan to offer single-backed digital currencies or improve their compliance systems do not pass the mark for the Rep, who has vowed to push for Libra’s classification as a “security”.
U.S Representative: “Libra hasn’t addressed the issues by FSC”
Regulators across the world are taking a closer look at Libra, Facebook’s crypto, setting tough regulations on stablecoins and other digital assets backed by fiat. Sylvia Garcia, who also serves on the House Financial Service Committee, questions why Facebook is offering cryptocurrencies in a Twitter thread sent out on Apr. 17.
2/ There are too many questions left unanswered about why @Facebook is developing a cryptocurrency and how it will affect the global economy and consumers.
— Rep. Sylvia Garcia (@RepSylviaGarcia) April 16, 2020
Libra, which is a Swiss-based digital payments platform, released its whitepaper on Thursday proposing the introduction of compliance and single fiat-backed stablecoins. Though the concept of a multiple fiat-backed digital currencies, LBR, is still in the plan.
Lawmaker Sylvia Garcia, however, isn't convinced and came to point out that the most recent whitepaper, issued by Libra, did not necessarily address concerns raised by her and Facebook CEO Mr. Zuckerberg. A Libra coin backed by a basket of assets is not what they had recently envisioned.
Representative Garcia further stated that the changes introduced in the new whitepaper don't follow the guidelines the Financial Service Committee offered during Mark Zuckerburg’s hearing last year. She wrote:
“As such, this doesn’t address the concerns I raised when Mr. Zuckerberg testified before FSC, and for which I introduced a bill to address said concerns.”
“Libra is a Security”
Notwithstanding, Garcia plans to continue the relentless push for Libra to follow the securities act claiming that it qualifies as one. The congresswoman wrote:
“I will continue to work to make sure that the SEC regulates any such asset as the security that it is under current securities laws.”
With growing regulatory scrutiny, a number of Libra members have dropped out of the project due to the rising uncertainty clouding the new project. These members include PayPal, eBay, MasterCard, Visa, Stripe, and Vodafone. Only a few members have joined the Libra Association recently; Shopify and Tagomi.