After hearing about six hours of testimony from Facebook CEO Mark Zuckerberg, Rep. Patrick McHenry (R-NC) says he thinks Libra is likely to launch — despite intense criticism from lawmakers and Trump administration officials.
“I think there's a greater deal of understanding that Libra is likely to happen, is strongly likely to happen,” said McHenry.
McHenry— the top Republican on the House Financial Services Committee — said he’s open to the idea of Libra, though there are many questions that still need to be answered.
“I'm especially open to ideas if they conform with our existing regulatory regime here in the United States. I'm open to innovations that mean that we have to correct our regulation,” said McHenry.
McHenry wouldn’t predict a timeline for Libra’s launch, saying it’s not his role as a member of Congress.
“I want to make sure they're going to comply with our laws. I also want to ensure that this is the right thing economically for those that participate in it, to make sure it's a safe product,” he said.
In his opening remarks, McHenry called Wednesday’s hearing a “trial on American innovation.” He slammed politicians who he argues try to squash ideas before they get off the ground, in order to “centralize power” in Washington.
“If you're going to conform with our existing regulatory regime, we shouldn't be picking those that are allowed to play the game,” McHenry told Yahoo Finance. “Congress shouldn't be granting charters or revoking charters for private businesses.”
Zuckerberg began his testimony talking about the benefits of Libra, though he acknowledged Facebook is not the “ideal messenger” for the project, given the past “challenging” few years. “I actually don’t know if Libra is going to work, but I believe it’s important to try new things — as long as you’re doing so responsibly,” he said. “That’s what has made America successful and it’s why our tech industry as led the world.”
McHenry told Yahoo Finance he didn’t think Zuckerberg’s testimony changed many minds on either side of the aisle. In an interview with Yahoo Finance, Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee, said she was not reassured by Zuckerberg’s Libra testimony, casting deep skepticism on the company and its plans for a new cryptocurrency.
McHenry recognizes there are concerns about Facebook. He said the fact that Facebook is the company spearheading the Libra effort is the only reason the hearing took place at all.
“Facebook's track record on privacy and consumer data — and that's really the rub with Washington in the political class and the skepticism from a lot of people on both the left and the right. So we still have that same big tech concern here, as policy makers in Washington. That's not different than what it was yesterday or what would be like tomorrow,” said McHenry.
Jessica Smith is a reporter for Yahoo Finance based in Washington, D.C. Follow her on Twitter at @JessicaASmith8.
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