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 WatersF-bombs away: Why lawmakers are cursing now more than ever Banks give Congress, New York AG documents related to Russians who may have dealt with Trump: report Maxine Waters: Force us to ban assault weapons 'or kick our a--- out of Congress!' 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 McHenryHillicon Valley: Trump seeks review of Pentagon cloud-computing contract | FTC weighs updating kids' internet privacy rules | Schumer calls for FaceApp probe | Report says states need more money to secure elections Maxine Waters says her committee will call in Zuckerberg to testify about Libra House asks Facebook: 'What is Libra?' 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 CrapoA US-UK free trade agreement can hold the Kremlin to account Oversight Republicans demand answers on Capital One data breach On The Money: Fed cuts rates for first time since financial crisis | Trump rips Fed after chief casts doubt on future cuts | Stocks slide | Senate kicks budget vote amid scramble for GOP support MORE (R-Idaho) scheduled a hearing on the project last week for July 16. And ranking Democrat Sen. Sherrod BrownSherrod Campbell BrownThe Hill's Campaign Report: Battle for Senate begins to take shape Dayton Democrat launches challenge to longtime GOP rep Dayton mayor: Trump visit after shooting was 'difficult on the community' 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.