According to an announcement by Congressman Emanuel Cleaver, II, representing the 5th district of Missouri, the United States Department of Treasury will begin an affirmative investigation on Facebook’s proposed Libra digital currency, as well as the Calibra wallet. According to the Department of Treasury’s letter, there are things that need to be straightened out before the Libra is officially launched.
“It is unclear whether U.S. and foreign regulators will have the ability to monitor the Libra market and require corrective action, if necessary. This concern must be addressed if the Libra is to launch.”
Back in August, the Congressman had written to Calibra, Facebook, the Office of Financial Research (OFR) and the Financial Stability Oversight Council (FSOC) as well, calling on the regulators to critically scrutinize the Libra on the chance that there’s a “possible systemic risk.” The Treasury then responded to the Congressman, agreeing that there might be significant concerns about the Libra and saying that it has decided to actively watch the project in the event that there are “any regulatory gaps it identifies.”
The Congressman currently chairs the Financial Services Subcommittee on Monetary Policy and has been a strong voice behind calls to properly monitor and regulate the Libra so it cannot be easily used by criminals and people who seek to clean dirty money. According to Cleaver:
“As Facebook works down this regulatory road, it is imperative that we affirm that terror financing and money laundering is not advanced through Libra, and, according to FSOC, significant concerns remain.”
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