House panel to hold hearing on Facebook cryptocurrency project

House panel to hold hearing on Facebook cryptocurrency project
© Aaron Schwartz

The chairwoman of the House Financial Services Committee announced Monday that the panel will hold a hearing next month on Facebook’s plan to develop a cryptocurrency-based payments platform.

The Financial Services Committee will hold a hearing on Facebook’s Project Libra on July 17, Chairwoman Maxine WatersMaxine Moore WatersGearing up for a chaotic year on K Street Maxine Waters: Republicans 'shielding' Trump 'going to be responsible for dragging us to war' Green says House shouldn't hold impeachment articles indefinitely MORE (D-Calif.) announced Monday afternoon. The Senate Banking Committee will hold its own hearing on the social media giant’s crypto project the previous day.

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David Marcus, the co-creator and leader of Project Libra, is expected to testify at the hearings, according to sources. A Facebook spokesman declined to confirm who would attend the hearing, but said in an email "We look forward to responding to lawmakers’ questions as this process moves forward."

Facebook triggered bipartisan alarm last week when it announced a plan to develop its own payments system based on a cryptocurrency supported by more than two dozen major corporations, including Uber, Mastercard, Spotify and Coinbase.

The cryptocurrency project would be operated by the non-profit Libra Association and separate from the social media platform, according to Facebook. But Facebook’s recent string of privacy breaches, federal penalties and immense power has spurred concern across the political spectrum.

Waters called on Facebook to suspend Project Libra until lawmakers and regulators had a chance to weigh in and grill company executives. Rep. Patrick McHenryPatrick Timothy McHenryMnuchin expresses concerns about proposed taxes on financial trades Fed's top regulator takes heat from both parties NC rep explores Tillis primary challenge MORE (R-N.C.), the Financial Services panel’s top Republican, echoed those concerns in a request for a hearing on Project Libra’s “potential unprecedented impact on the global financial system.”

The leaders of the Senate Banking Committee also expressed qualms about Project Libra, and have previously grilled Facebook on its privacy practices. 

The panel’s chairman, Sen. Mike CrapoMichael (Mike) Dean CrapoDrug price outrage threatens to be liability for GOP It's time for the Senate to advance cannabis banking reform On The Money: Senate chairman opposes cannabis banking bill | Panel advances Trump pick for Small Business Administration | Judge tosses NY state fraud charges against Manafort MORE (R-Idaho) scheduled a hearing on the project last week for July 16. And ranking Democrat Sen. Sherrod BrownSherrod Campbell BrownSenate Democrats launch investigation into Trump tax law regulations Senate approves Trump trade deal with Canada, Mexico Schumer votes against USMCA, citing climate implications MORE (D-Ohio) blasted Facebook for running “a risky new cryptocurrency out of a Swiss bank account without oversight.”

Updated at 4:25 p.m.