• Senate Wrestles With Bitcoin vs. Crypto, Gauges Need for Regulation in Latest Hearing

    The United States Senate Committee on Banking, Housing, and Urban Affairs hosted a hearing today, July 30, 2019, on cryptocurrency and blockchain regulation. This is the third in a recent spate of cryptocurrency-specific hearings in Congress, which began two weeks ago with Libra’s rounds in both the U.S. House of Representatives and the Senate. Libra’s hearings were notably longer than today’s (two hours and 18 minutes in the Senate and six and a half in the House). Politicians punctuated these sessions with worries over Facebook’s past privacy and data scandals. If Facebook can’t keep our data safe — and moreover, if we can’t trust what it says compared to what it actually does with this data — then why should regulators trust something like Libra with monetary policy?  Within the spectre of these pervasive fears, Bitcoin looked good by comparison. REGULATING THE INEVITABLE  Today’s hearing played out like a follow-up to some of Congress’ broader queries on cryptocurrency during the Libra discussions. Legislators grilled three panelists — Circle’s CEO Jeremy Allaire; University of California at Irvine School of Law professor Mehrsa Baradaran; and…

    Jul 31, 2019
  • Senate Banking Committee to Hold Hearing on Crypto Regulation

    The Senate Banking Committee will hold a hearing on regulatory frameworks for cryptocurrencies and blockchain next week. The committee said in a press release that it would hold an open session titled “Examining Regulatory Frameworks for Digital Currencies and Blockchain” on July 30, though it is unclear if this would be a fact-finding mission or if any specific pieces of legislation would be discussed. Circle CEO Jeremy Allaire, representing the Blockchain Association; Rebecca Nelson, a member of the Congressional Research Service specializing in international trade and finance; and Mehrsa Baradaran, a law professor at the University of California Irvine School of Law will testify as expert witnesses. The hearing will be livestreamed. The Senate Banking Committee has held a number of hearings around the space, with the most recent taking place last week, focused on Facebook’s Libra. Members asked David Marcus, the head of Facebook’s crypto project and the CEO of its Calibra subsidiary, a number of pointed questions about the project, but rarely brought up bitcoin or other cryptocurrencies. Instead, Senators took pains to distinguish between the broader crypto ecosystem and Facebook’s efforts…

    Jul 24, 2019
  • Lawmakers Amp Up Pressure on Facebook to Halt Libra Cryptocurrency Development

    U.S. lawmakers repeatedly pressed Facebook’s top blockchain executive to halt development of the Libra cryptocurrency during a contentious hearing on the project Wednesday. They didn’t get far. David Marcus, the CEO of Facebook’s subsidiary Calibra, reiterated his promise that Libra would not launch until regulators’ concerns were fully addressed. But he stopped short of committing to freezing technical work on the project, much to the chagrin of House Financial Services Committee members. The committee’s chairwoman, Rep. Maxine Waters (D-Calif.), had previously called for a moratorium, and it was one of the first things she brought up in the hearing, asking the Facebook executive: “Will you stop dancing around this question and commit here in this committee … to a moratorium until Congress enacts an appropriate legal framework to ensure that Libra and Calibra do what you claim it will do?” Marcus responded with roughly the same talking point he’s been using for weeks. “I agree with you that this needs to be analyzed and understood before it can be launched … and this is my commitment to you. We will take the time…

    Jul 18, 2019
  • Bitcoin Fell Below $10,000. Is This the Response of Encryption Market to Libra Hearing?

    In the early morning of July 17, Bitcoin plummeted by a thousand points, and the lowest fell to $9355, breaking the 60-day moving average. It also fell below the 60-day moving average for the first time since the formation of the bitcoin trend, forming the biggest correction. As of press time, Bitcoin temporarily remained near $9374.57, falling by 10.70% within 24 hours. In addition to Bitcoin, 93% of the top 100 cryptocurrencies have seen significant declines. Among them, ETH fell 13.69%, XRP fell 5.91%, EOS fell 15.44%. The general decline in the encryption market was at the time of the Libra hearing in the United States, which forced people to consider the connection between them. At 22 o’clock on the evening of July 16th, Beijing time, Senate Banking Committee held a hearing on the Facebook encryption project Libra. The Libra digital currency and data privacy issues became the subject of this hearing. Since the Senate Banking Committee Chairman Mike Crapo announced the official start of the Libra hearing, the globally-acclaimed hearing began more than two hours of question-and-answer wars. The…

    Jul 17, 2019
  • Highlights From Facebook’s Libra Senate Hearing

    Facebook  will only build its own Calibra cryptocurrency wallet into Messenger and WhatsApp, and will refuse to embed competing wallets, the head of Calibra David Marcus told the Senate Banking Committee today. While some, like Senator Brown, blustered that “Facebook is dangerous!” others surfaced poignant questions about Libra’s risks. Calibra will be interoperable, so users can send money back and forth with other wallets, and Marcus committed to data portability so users can switch entirely to a competitor. But solely embedding Facebook’s own wallet into its leading messaging apps could give the company a sizable advantage over banks, PayPal, Coinbase or any other potential wallet developer. Other highlights from the “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations” hearing included Marcus saying: The U.S. should “absolutely” lead the world in rule-making for cryptocurrencies The Libra Association chose to be headquartered in Switzerland “not to evade any responsibilities of oversight” but since it’s where international financial groups like the Bank for International Settlements, though Calibra will be regulated by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network “Yes,” Libra will comply with…

    Jul 16, 2019
  • Libra Head Publishes Testimony for the US Senate Hearing

    The Senate Banking Chair in the US had scheduled a meeting with the executive of Facebook to question about Libra for 16th July 2019. Reportedly, Marcus David, the Head of the Libra Association, will be representing the Tech Giant’s plans. David has shared the written testimony on the government website where he diligently explains the development and the plans with Libra. Moreover, Marcus David was also the President of one of the largest payment network in the world, PayPal. In the beginning, he revisits this fact and association with Facebook to further converge on the issue. On Libra, he emphasized the utility of the payment system and its viability. He wrote, Libra is about developing a safe, secure, and low-cost way for people to move money efficiently around the world. He also added, “In fact, I expect that this will be the broadest, most extensive, and most careful pre-launch oversight by regulators and central banks in FinTech’s history.” He mentioned that Libra would work with the Governments and that “monetary policy is properly the province of central banks.” Nevertheless, the structure proposed by him mimics that…

    Jul 16, 2019

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