Senate Banking Committee Expects Facebook Testimony on Project Libra

Senate Banking Committee ranking member Sherrod Brown, D-Ohio, expects Facebook to testify July 16 about its Project Libra cryptocurrency plans (see 1906180063). The committee announced the hearing for 10 a.m. in 538 Dirksen without listing witnesses. “We expect them to come before the committee,” Brown told us. “The public should know what they’re going to do before they move ahead with this, for sure.” The company didn’t comment. Brown expects the company to argue Project Libra will fill the needs of customers who can’t operate within the traditional banking system. “I think people around here are not particularly trusting of Facebook to look out for them. They’re going to look out for themselves -- no surprise there.” The committee needs “to review it very carefully,” Chairman Mike Crapo, R-Idaho, said, calling the concept “very intriguing.” It’s important to evaluate whether the appropriate regulatory authorities are in place to ensure proper oversight, Crapo told us. American Enterprise Institute Visiting Fellow Jim Harper noted Libra will be a separate entity from the company, and transaction data won’t be available to advertising systems: “Whatever results from stirring the currency and payments pot is likely to be better than what we have now. We might just end up with a secure, privacy-protective internet of money.” The House Financial Services Committee is also seeking a hearing with Facebook on Libra. Brown said the project raises privacy and data security concerns. The Banking Committee hearing will also focus on data privacy. It's time to get moving on privacy legislation to avoid a patchwork of state laws like in California, Senate Majority Whip John Thune, R-S.D., told reporters Tuesday. “My hope would be that we would be able to mark something up before the August break.” It’s unclear if the Senate Commerce Committee privacy group is nearing a draft proposal, he said. It’s going to take a willingness and acceptance of not “getting everything you want,” he added. “Unfortunately, there are some Democrats who are fine with the California law going into effect, and that isn’t going to be helpful obviously if we’re trying to push this through and have a sense of urgency about it.”