Coinbase CEO Critiques Senators for Trying to Sabotage Facebook’s Libra Project

Senatorial Pressure on Payment Giants

The crypto world is currently buzzing, and not just because of the next Bitcoin halving. U.S. Senators Brian Schatz and Sherrod Brown have stirred the pot by encouraging payment behemoths like Stripe, Mastercard, and Visa to sever ties with Facebook’s ambitious Libra project. Coinbase’s CEO Brian Armstrong is openly opposing this political meddling, calling it “un-American” in a tweet that has certainly raised eyebrows.

Armstrong’s Bold Statement

Brian Armstrong took to Twitter on October 13 to voice his concerns, saying,

“Something feels very un-American about this. Two senators writing to Visa, Mastercard, and Stripe to ask them to withdraw from Libra.”

Clearly, his tweet hit home as it highlighted a major concern about freedom of enterprise within the cryptocurrency sphere.

What the Senators Actually Said

On October 8, Senators Schatz and Brown penned letters to the aforementioned payment processors, demanding they reconsider their involvement with Libra. Their main argument was that if these companies proceeded with their participation, they would face intense regulatory scrutiny, not just limited to Libra-related activities but extending to all payment dealings. The threat was clear: move away from Libra, or prepare for a rough ride with regulators.

Safety and Trust Concerns

The senators did not just pull concerns out of thin air. They pointed to Facebook’s troubling history with child sexual abuse content distribution. According to their letters, Facebook Messenger reportedly had its paws on 12 million out of the 18.4 million reports of child sexual exploitation photos and videos in 2018. In a bold final statement, they warned:

• Combining encrypted messaging with anonymous payments could escalate global criminal activity.
• Payment companies should prioritize more than just profits—they must consider the broader implications of their association with Facebook.

The Ripple Effect

Following this horde of political pressure, major players like Visa, eBay, Stripe, and Mastercard decided to bail out of the Libra Association by October 11. PayPal, another key stakeholder, had already jumped ship earlier on October 3.

Upcoming Testimony

Despite these upheavals, Facebook is not backing down. CEO Mark Zuckerberg is scheduled to testify before the House of Representatives Financial Services Committee on October 23. The question remains: will he be able to calm the storm brewing around Libra, or are these regulatory waves just the beginning of a much larger tidal surge?