The United States seems to be on a fast track to cryptocurrency regulations, and they will now try to get some help from other jurisdictions.
Late last week, NZZ am Sonntag, a local Swiss news agency, reported that Washington would be sending a delegation of members of the U.S. House of Representatives to Switzerland in a bid to discuss concerns over the adoption of cryptocurrencies.
The report revealed that chief amongst these concerns would be Libra, the stablecoin project set to be released by social media giant Facebook. However, the prospect and suspected dangers of wider crypto regulation will also take center stage.
NZZ reports that the delegation will consist of six members of the Financial Services Committee of the House. They will meet with Adrian Lobsiger, the Head of the Swiss Federal Data Protection and Information Commissioner (FDIPC), to speak about their views on digital currencies and how they work.
As expected, the delegation will be led by Rep. Maxine Waters (D CA), the Chairwoman of the Financial Services Committee. Waters was one of the very first lawmakers to draw attention to Facebook’s Libra stablecoin, as she called for the social media giant to halt progress on the asset until all of its internal workings have been understood and ratified by Congress.
The meeting will form a very important one for Facebook in particular, as it could determine whether or not its stablecoin project will be able to continue. According to the Libra whitepaper, the asset is set to be governed by the Libra Association; a body, based in Switzerland, and which consists of the cryptocurrency exchanges, venture capitalists, and other firms that have partnered with Facebook on the asset.
Last month, Facebook’s Blockchain head David Marcus appeared before Congress to provide more clarity on the asset, and amongst other things, lawmakers seemed to be unimpressed by the company’s choice to regulate its asset from Switzerland. While Marcus assured them that the social media giant had been in contact with the Swiss Financial Market Supervisory Authority, it was later revealed that this wasn’t the case.
The FIPC has also sent a letter to the Libra Association, asking for further details about the asset. It is hoped that by meeting, all concerns about Libra and its implications can be solved, and the two governments can come to an agreement as regards how it would be monitored and regulated.
The meeting also promised to be relevant to the crypto community at large as well. If the prospect of crypto regulation and acceptance is to be achieved, then Switzerland is undoubtedly one of the best countries for the United States to take lessons from.
The European country has proven to be a hub of innovation, especially with digital assets. With the highest rate of crypto ownership in Europe and a thriving market for Bitcoin trading and other crypto transactions, it is in prime position to give Washington some lessons on accepting cryptocurrencies and regulating them.