US Treasury to Monitor Libra Over Possible Financial Risks

The Treasury Department has committed to monitoring the Facebook-led cryptocurrency project Libra alongside regulatory efforts by Congress.

AccessTimeIconOct 23, 2019 at 11:20 a.m. UTC
Updated Dec 11, 2022 at 1:53 p.m. UTC

The U.S. Department of the Treasury has committed to monitoring the Facebook-led cryptocurrency project Libra.

The news was announced by Emanuel Cleaver, II, congressman for Missouri’s fifth district, on Tuesday. Cleaver said he'd written to the Financial Stability Oversight Council (FSOC), and the Office of Financial Research (OFR) in August calling on the regulators to "proactively examine Libra and Calibra for possible systemic risk."

Cleaver received a letter from back from the Treasury yesterday, confirming that there are many "unanswered questions" over Libra. The department said that as Congress "continues to examine these issues" it would "closely monitor this market to address any regulatory gaps that it identifies."

The Treasury added:

“It is unclear whether U.S. and foreign regulators will have the ability to monitor the Libra market and require corrective action, if necessary. This concern must be addressed if the Libra is to launch.”

With Facebook's global reach, Cleaver argued it's "absolutely critical" that the project be "stringently" examined to ensure the cryptocurrency "does not pose a systemic risk to the global economy.”

While he applauded Facebook's efforts to work with regulators on Libra concerns, Cleaver said it has "the potential to update – or upend – our financial system."

"As Facebook works down this regulatory road, it is imperative that we affirm that terror financing and money laundering is not advanced through Libra, and, according to FSOC, significant concerns remain,” he concluded.

The announcement came a day before Facebook's CEO Mark Zuckerberg is set to testify before the House of Representatives Financial Services Committee over Libra and other issues. The hearing is set for 14:00 UTC today and can be viewed live here.

Treasury image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.