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Pressure on members of the Libra Association grows with new letters from the Senate to Stripe, Visa and Mastercard

Lawmakers have begun to actively press members of the Libra Association, the Facebook-led international blockchain payment project, to rethink their involvement in the group.

In a new letter to the CEOs of Visa, Mastercard and Stripe Sens, Brian Schatz (D-HI) and Sherrod Brown (D-OH) warn of the enormous risks associated with the Libra project, including the relief the financing of crime and terrorism and the destabilization of the global financial system. The letter also notes that companies in their conventional, non-blockchain-compliant businesses would be subject to increased oversight by the financial supervisors if they continued the merger.

" Facebook seems to want the benefits of financial activity without being responsible for being regulated as a financial services company, "the letter said," if you accept this, you can not get a high degree of oversight from the regulators expect only in terms of balance-related activities, but also in terms of all payment activity. "

Republicans were also skeptical of the project, along with Senator Josh Hawley (R-MO) referred to it as Facebook's" expansion monopoly. "

As a payment service provider, all three companies are exposed to significant federal regulatory burdens, including the Federal Trade Commission, the Consumer Financial Protection Bureau, and the Department of Justice, which are increasingly scrutinizing Facebook. In particular from the FTC, which at the beginning of this year reached an agreement with the $ 5 billion. None of the three payment providers immediately responded to a request for comment.

The letters arrive just days after PayPal left the Libra Association. The company did not give a specific reason, but many speculated that it was a response to increased regulatory pressure.

"The Libra Association adheres to its commitment to start only when issues and concerns of the regulators are clarified." Chief Dante Disparte recounted The Verge . "This is anchored in our long runway, which has enabled us to educate regulators, decision makers and other stakeholders around the world on our commitment to responsible financial innovation and rigorous oversight."

So far, the other members of the Libra have committed to the project, which is still in their infancy ̵

1; but there will be plenty of opportunity to address these issues in the coming month. The first official meeting of the Libra Association will take place in Geneva on October 14th. Mark Zuckerberg is due to appear in House Financial Services the following week, October 23, where the risks and benefits of Libra will be a key issue.

Update 12:14 ET: Updated with a new commentary from the Libra Association and details of the appearance of Mark Zuckerberg's committee.

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