House panel to hold hearing on Facebook cryptocurrency project

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 Waters On The Money: S&P hits record as stocks rally on Fed cut hopes | Facebook's new cryptocurrency raises red flags for critics | Internal IRS watchdog rips agency's taxpayer service | Apple seeks tariff relief Facebook's new cryptocurrency raises red flags for critics Facebook's crypto experiment will languish on Capitol Hill 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.

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 McHenry Hillicon Valley: Facebook unveils new cryptocurrency | Waters wants company to halt plans | Democrats look to force votes on election security | Advertisers partner with tech giants on 'digital safety' | House GOP unveils cyber agenda On The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project Maxine Waters calls on Facebook to halt cryptocurrency project 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.”