Senator Mike Rounds praised the trust company for sticking with Libra following the exodus of seven of the project's partners.
Following much hostility from US Legislators and the withdrawal of seven companies from the so-called Libra Association (the organization of backers for Facebook’s global cryptocurrency project), one US Senator has stepped forward to show support for Libra.
Indeed, US Senator Mike Rounds (R-SD) sent an open letter to Anchorage, a trust co0mpany based in his home state, praising the company for its decision to stay in the Association: “your willingness to take risks in an effort to improve the lives of Americans and our neighbors across the globe is one of the hallmarks of what makes our country great,” he wrote.
In the Anchorage letter, Rounds said that “it is profoundly disappointing that my colleagues chose to address your peers in such an ominous tone, which I fear may put a chill on innovation in the long run,” and expressed concerns that the US was lagging behind in the global digital economy.
Specifically, Rounds referred to the fact that by 2022, Payments made from digital wallets “will comprise less than 10 percent of U.S. consumer in-person point of sale payments,” while Africa already had “100 million active mobile money accounts” in 2017. He also noted that mobile payment transaction volume in the US is dwarfed by China’s.
Rounds also said that he found the negative reaction to Libra to be “puzzling” due to the age of US securities laws: "that law was written more than half a century before computers and the internet were created, more than two decades before Hawai'i was admitted to the Union, a decade before the jet engine was developed, and in a period of time in which 90 percent of rural America lacked electricity," he wrote.
Letter from Schatz and Brown warned Libra Association members that they may be liable for Facebook’s shortcomings
However, Senator Rounds’ letter did not directly address some of the concerns that Schatz’ and Brown’s letter contained regarding Facebook’s integrity.
The letter, which was shared on Twitter by Gabor Gurbacs, digital asset strategist/director at VanEck, said that “Facebook is currently struggling to tackle massive issues, such as privacy violations, disinformation, election interference, discrimination, and fraud, and it has not demonstrated an ability to bring those failures under control.”
The letter warned Libra Association members that they may be liable for Facebook’s shortcomings: “you should be concerned that any weaknesses in Facebook’s Risk Management systems will become weaknesses in your systems that you may not be able to effectively mitigate.”
The letter also alleges that Facebook is attempting to act as an unregulated financial arbitrator, and that the social media giant “is attempting to accomplish [this] objective by shifting the risks and the need to design new compliance regimes onto regulated members of the Libra Association like your companies,” the letter from Schatz and Brown reads.
However, Rounds’ letter does specifically address Schatz’ and Browns’ concerns regarding compliance with anti-money laundering laws and anti-terrorist financing measures but said that it was the responsibility of the federal government to ensure that companies like Libra are adequately complying with these kinds of regulations.
“Expanding the federal government’s anti-money laundering and crime-fighting jurisdictions to include digital currencies would be a sensible way to resolve fear about anti-money laundering controls,” he wrote.
Rounds’ efforts to urge Anchorage to remain with the Libra Association also follow the exodus of seven companies from the organization: PayPal, eBay, Mastercard, Visa, Stripe, Booking Holdings Inc., and Mercado Libre Inc.
Following much hostility from US Legislators and the withdrawal of seven companies from the so-called Libra Association (the organization of backers for Facebook’s global cryptocurrency project), one US Senator has stepped forward to show support for Libra.
Indeed, US Senator Mike Rounds (R-SD) sent an open letter to Anchorage, a trust co0mpany based in his home state, praising the company for its decision to stay in the Association: “your willingness to take risks in an effort to improve the lives of Americans and our neighbors across the globe is one of the hallmarks of what makes our country great,” he wrote.
In the Anchorage letter, Rounds said that “it is profoundly disappointing that my colleagues chose to address your peers in such an ominous tone, which I fear may put a chill on innovation in the long run,” and expressed concerns that the US was lagging behind in the global digital economy.
Specifically, Rounds referred to the fact that by 2022, Payments made from digital wallets “will comprise less than 10 percent of U.S. consumer in-person point of sale payments,” while Africa already had “100 million active mobile money accounts” in 2017. He also noted that mobile payment transaction volume in the US is dwarfed by China’s.
Rounds also said that he found the negative reaction to Libra to be “puzzling” due to the age of US securities laws: "that law was written more than half a century before computers and the internet were created, more than two decades before Hawai'i was admitted to the Union, a decade before the jet engine was developed, and in a period of time in which 90 percent of rural America lacked electricity," he wrote.
Letter from Schatz and Brown warned Libra Association members that they may be liable for Facebook’s shortcomings
However, Senator Rounds’ letter did not directly address some of the concerns that Schatz’ and Brown’s letter contained regarding Facebook’s integrity.
The letter, which was shared on Twitter by Gabor Gurbacs, digital asset strategist/director at VanEck, said that “Facebook is currently struggling to tackle massive issues, such as privacy violations, disinformation, election interference, discrimination, and fraud, and it has not demonstrated an ability to bring those failures under control.”
The letter warned Libra Association members that they may be liable for Facebook’s shortcomings: “you should be concerned that any weaknesses in Facebook’s Risk Management systems will become weaknesses in your systems that you may not be able to effectively mitigate.”
The letter also alleges that Facebook is attempting to act as an unregulated financial arbitrator, and that the social media giant “is attempting to accomplish [this] objective by shifting the risks and the need to design new compliance regimes onto regulated members of the Libra Association like your companies,” the letter from Schatz and Brown reads.
However, Rounds’ letter does specifically address Schatz’ and Browns’ concerns regarding compliance with anti-money laundering laws and anti-terrorist financing measures but said that it was the responsibility of the federal government to ensure that companies like Libra are adequately complying with these kinds of regulations.
“Expanding the federal government’s anti-money laundering and crime-fighting jurisdictions to include digital currencies would be a sensible way to resolve fear about anti-money laundering controls,” he wrote.
Rounds’ efforts to urge Anchorage to remain with the Libra Association also follow the exodus of seven companies from the organization: PayPal, eBay, Mastercard, Visa, Stripe, Booking Holdings Inc., and Mercado Libre Inc.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!