The Congressional Hearing: What’s Happening?

On October 23, all eyes will be on Facebook CEO Mark Zuckerberg as he prepares to testify before the House of Representatives Financial Services Committee. This highly-anticipated event is titled An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors. Talk about a long title—grab your coffee and snacks, folks!

Libra and Calibra: The Controversial Duo

The Libra stablecoin and its associated digital wallet, Calibra, have caught the attention of lawmakers. It seems Congresswoman Maxine Waters and her cohorts have had enough of the crypto chaos. In July, they penned a letter urging an immediate halt on implementing Libra and Calibra. Their concern? Well, it’s not just fear of the digital wallet stealing their lunch money; it’s a full-blown effort to keep Big Tech out of finance.

The ‘Keep Big Tech Out of Finance Act’

• This proposed legislation is meant to prevent large tech platforms from becoming licensed financial institutions.
• No Facebook banking or investment funds in our future!
• It aims to keep tech giants like Facebook from being chartered or registered as financial institutions in the U.S.

It’s like saying, “No, Facebook, you can’t be our friends and our bankers!”—a classic case of too much privilege, perhaps?

Previous Testimonies: A Glimpse into the Past

Calibra CEO David Marcus took the stand earlier in July 2019, singing the praises of Libra. He suggested that Libra could offer advantages that existing payment systems lack. How can one not love a good underdog story—especially when the underdog is a multi-billion dollar tech giant?

Zuck’s Cautious Approach

Fast forward to late September, Zuckerberg himself declared that the company is adopting a more meticulous methodology for introducing Libra. According to him, it’ll be less like a surprise party where no one knows what’s going on, and more like a well-coordinated, if slightly awkward, family reunion with regulators.

Facing the Music

Imagine Zuckerberg walking into the hearing room with an entourage of lawyers and power suits—talk about high stakes! In leaked audio snippets, he hinted at a newfound commitment to a consultative approach, emphasizing the need for private chats with regulators that wouldn’t send everyone into a tailspin like these public hearings sometimes do.

What to Expect?

As we inch closer to the hearing, the big question remains: what will Zuckerberg reveal? Will he charm his way out, or will this lead to a dramatic showdown? Either way, it’s bound to be must-see viewing for anyone trying to understand the future of digital currency and Facebook’s place in it.