US Treasury: Endorses the need to monitor Libra and question regulators' ability to regulate Libra

According to Cointelegraph's October 24 report, after receiving a letter from Rep. Emanuel Cleaver, the US Treasury said it was necessary to investigate Facebook's upcoming Libra stable currency.

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According to a press release issued by Congressman Clive on October 22nd, Clive called for a review of the potential systemic risks of Libra and its Calibra wallet, and the US Treasury responded positively to the request.

As early as August, Clive sent the letter to Facebook, Calibra, the US Financial Stability Supervisory Board and the US Treasury Department of Financial Research. In September, Facebook said it would postpone the release of Libra until approval by US regulators.

Questioning the ability of regulators to regulate Libra

In response to the response to the Clifford, the US Treasury Department pointed out that Libra must comply with the "Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism" and the requirements of the US Bank Secrecy Act.

The U.S. Treasury questioned the ability of regulators in the United States and other countries to regulate Libra and called for necessary corrections. It stated that these issues must be resolved before Libra is launched. In addition, the Treasury added that it will monitor the Libra and cryptocurrency markets to work with the House of Representatives to address possible regulatory loopholes.

At the hearing of the House Financial Services Committee yesterday, Treasury Secretary Steven Munuchin said that the US Financial Stability Oversight Committee has set up a special working group to oversee the Libra and cryptocurrency sectors. Munuchin pointed out that the Financial Stability Oversight Board may use Libra members to supervise the project.

Zuckerberg testifies in Congress

On the second day after Clifford received a reply from the Ministry of Finance, Facebook CEO Mark Zuckerberg testified on Libra in the House Financial Services Committee. At the hearing, Rep. Tim Mahoney asked Zuckerberg to guarantee that Libra will never allow all wallets that do not meet Facebook's commitment standards to understand customers and anti-money laundering to participate in the Libra project.

Zuckerberg replied:

I can't speak on behalf of the entire Libra Association, but I will promise you.

Zuckerberg also assured the committee that if the US regulator does not agree, Facebook will not launch Libra anywhere in the world.