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This current trend of of "disrupting" the market by flouting or circumventing regulations may have worked for Uber, AirBnB and so on, but Libra might just be a step too bold.

Unless Libra aims to uphold the same regulations that banks must, then at some point, I predict that there is a huge amount of trouble coming for them. Financial services can be both used and abused, and regulators have forced banks to address the abuse (eg: AML/KYC practices) to protect participants. Circumventing these regulations is equivalent to rolling back these protections.

The same could be said about any other industry that might profit from using Libra, be it investment advisors to casinos to who knows what else.




> there is a huge amount of trouble coming for them

Apparently neither the House Financial Services committee nor Senate Banking Committee were given a heads up on this launch. From a government relations perspective, this is a whiff of fresh breeze for those of us advocating for a break-up.


Thinking about your comment, I've started to become skeptical of my own position:

Sure, financial regulators are probably extremely upset about this, and are probably going to fight it. However, the data Facebook would be collecting here would extremely valuable to other regulators; data they cannot currently access precisely because it is protected by financial regulation.

If Facebook were to offer access to this data (on National Security grounds, or 'think of the children' grounds, etc.), agencies could have immediate access to immense amounts of data from potentially every user, whereas currently, they'd probably need a court order (or National Security Letter, etc.) to access the data of just one.

Would any of the committees you listed prevail against these interests?




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