Switzerland Visit Fails to Quiet US Regulators’ Crypto Concerns

Lawmakers from the United States have recently visited Switzerland. Part of the goal of the journey was to help American lawmakers quell their concerns over Facebook’s cryptocurrency, Libra. However, it is now clear that the trips did not solve all worries.

Switzerland visit did not quell concerns over Libra

Specifically, Representative Maxine Waters – known for urging Facebook to halt Libra development – recently made an official statement. Waters notes that members of the United States House of Representatives Financial Services Committee met multiple regulatory agencies in Switzerland.

For example, these supposedly include the Federal Data Protection and Information Commissioner, the State Secretariat for International Financial Matters, and the Financial Market Supervisory Authority.

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As an earlier Toshi Times article says, the aim of the trip was inspiration on moving forward with US regulations. Moreover, the representatives would enquire how Swiss authorities plan to regulate Libra. Nevertheless, it would appear that things have not gone entirely according to plan. 

According to Waters, the talks reportedly did yield some limited insight. However, this did little to ease the US regulators’ concerns over the prospect of Facebook’s Libra. As Waters put it:

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

Switzerland is known for its attractive crypto regulations

Nonetheless, the choice of Switzerland as a source of inspiration has not come out of thin air. The vice president of Facebook’s messaging products and the co-creator of Libra, David Marcus, has previously said that Switzerland is a ”good regulatory fit” for the Libra project.

Switzerland is known for its lax crypto regulations, which are attractive conditions for crypto startups. American lawmakers, on the other hand, express concerns that Facebook will simply locate to Switzerland to avoid ”legal scrutiny”. 

Earlier this week, Waters said that the US Congress should continue to investigate Libra. Moreover, she also said that ”further review” of the crypto should be a main priority for the Financial Services Committee’s next session.

It remains to see whether the US will eventually change course. Earlier this summer, one crypto fund manager said that the United States has ”already lost” the crypto innovation race. As such, regulatory decisiveness will likely prove key to any further crypto innovation in the US. Consequently, the trip has not yet solved all Libra-related question marks.