Name: 'I don't trust you guys': Libra divides Republicans amid Facebook furor
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'I don't trust you guys': Libra divides Republicans amid Facebook furor

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Senators grilled the executive, David Marcus, over Facebook's enabling of Russian election interference and questioned whether the company would crack down on transactions involving gun owners and opponents of abortion rights in response to political pressure. | Alex Wong/Getty ImagesFacebook’s plan to spearhead a new digital currency is splitting Republicans over whether they trust the social media giant to become a new force in finance, amid concerns over privacy violations and fears of bias against conservatives.The latest GOP rift over Big Tech emerged at a Senate Banking Committee hearing Tuesday on Facebook’s planned Libra currency, which the company and several partners are looking to launch next year.In questioning a Facebook executive testifying Tuesday morning, some Republican senators showed an open mind toward the company’s promised innovations, which it argues will make financial services available to more people. Sen. Pat Toomey of Pennsylvania said growing calls to delay Libra were “wildly premature.”But that was in direct conflict with a handful of other Republicans distrustful of Facebook’s worldwide influence. They grilled the executive, David Marcus, over Facebook’s enabling of Russian election interference and questioned whether the company would crack down on transactions involving gun owners and opponents of abortion rights in response to political pressure.“I have great respect for Facebook but Facebook now wants to control the money supply,” Sen. John Kennedy (R-La.) said. “What could possibly go wrong?”The hearing illustrated the political hurdles Facebook must overcome to launch Libra, with Democrats more aligned in their deep skepticism of the project. Sen. Sherrod Brown of Ohio, the committee’s top Democrat, told Marcus it was “delusional” to think people should trust Facebook with their finances.But many GOP lawmakers are at odds over whether to support flourishing businesses or censure powerful firms seen to be misusing their influence.Senate Banking Chairman Mike Crapo (R-Idaho) has led efforts to probe Libra and the potential risks the new payment network envisioned by Facebook poses to Americans’ privacy. Yet Crapo said, if done right, Facebook’s efforts could deliver benefits by expanding access to the underbanked and providing cheaper, faster payments.“Despite the uncertainties, Facebook’s stated goals for the payments systems are commendable,” he said.Tuesday’s high-profile hearing revealed the closest thing Congress has to defenders of Libra amid weeks of fierce criticism and questioning from Capitol Hill.Toomey dismissed the idea “that we have to act now to prevent what could be a very constructive innovation in financial services.”“We should be exploring this and considering the benefits as well as the risks and take a prudent approach,” he said. “To announce in advance that we have to strangle this baby in the crib is wildly premature.”But other Republicans were blunt in their skepticism of Facebook’s intentions.“I don’t trust you guys,” said Sen. Martha McSally (R-Ariz.), citing “repeated violations of your users’ privacy” and “repeated deceit.” She later issued a press release on her lashing of Facebook.Sen. Tom Cotton (R-Ark.) pressed Marcus on how Facebook would respond to potential political pressure from the left to crack down on certain transactions, such as firearms sales or subscriptions to conservative Breitbart News.Cotton warned Marcus about the recent experience of giant banks, which Democrats have urged to cut ties with gun manufacturers and private detention companies tied to President Donald Trump’s immigration policies.Marcus said Facebook, which plans to operate a digital currency “wallet” on top of the independently managed Libra network, would allow users to transact freely within some restrictions and regulations.“Just wait until tomorrow, until you go before the House Financial Services Committee, if you think the Democrats on this committee have hounded banks,” said Cotton, referring to Marcus’s scheduled Wednesday testimony before progressives including Rep Alexandria Ocasio-Cortez (D-N.Y.) who have put political pressure on lenders. “Wait until you see what you’re in for over there.”

Senators grilled the executive, David Marcus, over Facebook's enabling of Russian election interference and questioned whether the company would crack down on transactions involving gun owners and opponents of abortion rights in response to political pressure. | Alex Wong/Getty ImagesFacebook’s plan to spearhead a new digital currency is splitting Republicans over whether they trust the social media giant to become a new force in finance, amid concerns over privacy violations and fears of bias against conservatives.The latest GOP rift over Big Tech emerged at a Senate Banking Committee...

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Politico, known originally as The Politico, is an American political journalism company based in Arlington County, Virginia, that covers politics and policy in the United States and internationally. It distributes content through its website, television, printed newspapers, radio, and podcasts. Its coverage in Washington, D.C. includes the U.S. Congress, lobbying, the media, and the presidency.

'I don't trust you guys': Libra divides Republicans amid Facebook furor

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