After the visit to Switzerland, US regulatory agencies still have doubts about cryptocurrencies.

The U.S. House Financial Services Committee recently met with several financial regulators from Switzerland. However, following the meeting, U.S. lawmakers still expressed concerns about cryptocurrencies, especially regarding Facebook's Libra project.

Multiple financial institutions including the Swiss Financial Market Supervisory Authority (FINMA), the Federal Data Protection and Information Commissioner (FDPIC), and the State Secretariat for International Financial Matters (SIF) are involved.

According to a report by Reuters, Facebook registered a new company called Libra Networks in Geneva, Switzerland on 5/2. This aligns with the launch of its internal cryptocurrency and marks the company's first foray into blockchain technology, making Switzerland the headquarters for this social media giant's new project.

As reported previously, a delegation of six representatives from the U.S. House of Representatives visited Switzerland for discussions. The team leader, Chairwoman Maxine Waters, mentioned her previous request for Facebook to halt the development of Libra until the risks involved are properly understood.

The purpose of the meeting was to clarify regulatory issues surrounding Libra, with the U.S. expressing dissatisfaction with Switzerland's regulation of cryptocurrencies. Maxine Waters reiterated her previous stance, suggesting that Facebook chose Switzerland to launch the project to evade U.S. regulation, a claim denied by the head of Libra during the hearing. They believe that Switzerland's jurisdiction is a favorable international location for conducting business, not an intentional avoidance of U.S. regulation.

Despite Swiss regulatory representatives emphasizing their commitment to gaining a deeper understanding of Libra and further involvement in its management, Chairwoman Waters stated in an official statement issued on 8/25:

While I appreciate the time that Swiss government officials took to meet with us, and the information they provided, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency.

Earlier this week, Congress announced that it will continue to investigate the Libra project, with further scrutiny becoming a "priority" for the next session of the Financial Services Committee. Until concerns from the Federal Reserve and other regulatory bodies are addressed, the social media giant has pledged not to launch its proposed stablecoin.

The Libra project is currently one of the most closely watched endeavors, and it significantly reflects the U.S. regulatory stance on cryptocurrencies. Let's continue to track its developments.

Further Reading

• Weiss Cryptocurrency Ratings: These Two Projects Are Better Than BTC
• Is Bitcoin Used on the Dark Web? Study Shows Fiat Transactions on Dark Web 800 Times Greater Than Bitcoin

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