US Fed Reserve Chair: Our Government May Need a New Regulator to Address Concerns over Libra

[ChainDD report] July 12 (ChainDD) At a hearing made by the US Senate Banking Committee on July 11, ,Jerome Powell, Chairman of the US Federal Reserve, suggested the US government may need a new regulator to address privacy concerns raised by Libra, the cryptocurrency Facebook plans to launch next year.

Powell told members of the Committee: “There isn’t any one agency that can stand up and have oversight over this. The privacy rules that we apply to banks, we have no authority to apply them to Facebook or to Libra.” “It isn’t obvious at all in our current regulatory system that we have in place what we need,” he added.

The Fed doesn’t want to impede financial innovation, but as Powell said, the top concern of the Fed is there is no apparent leading regulator to overseas Libra.

Powell pledged the Fed will coordinate with other global financial regulators to vigorously review Libra’s proposals. He reiterated his statements at the hearing before US House Committee on Financial Services that given the size of Facebook’s network, Libra could have such scale and immediately be systemically important, therefore, it requires the highest level of scrutiny by global financial regulators.

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