, 300 tweets, 156 min read
Good morning folks. @facebook's Mark Zuckerberg is testifying before @FSCDems / @FinancialCmte today to advocate for @Libra_, among other things. Kick-off is in 30 minutes, I'll be live-tweeting, and my thread starts here: #LibraInDC
@facebook @FSCDems @FinancialCmte @Libra_ Zuckerberg's opening testimony defending @Libra_ was published yesterday: "I'm sure people wish it was anyone but @facebook putting this idea forward." coindesk.com/what-to-expect… #LibraInDC
ICYMI: The @Libra_ Assn formally signed the charter creating the crypto's governing council last week. FB is no longer spearheading this, on paper at least coindesk.com/facebook-led-l… #LibraInDC
Legislator response to @Libra_ has been immense. @RepMaxineWaters called for a moratorium on development until legal qs are answered, ministers from multiple nations have expressed alarm #LibraInDC
And yesterday @RepSylviaGarcia wrote a draft bill which would classify stablecoins backed by a basket of assets as securities #LibraInDC coindesk.com/us-lawmaker-in…
.@RepMaxineWaters is kicking things off: Today we're here to examine the impact of @facebook on the financial services and housing sectors #LibraInDC
Facebook's plans to create a digital currency, @Libra_, and a digital wallet, @calibra, raise many concerns, @RepMaxineWaters says #LibraInDC
.@RepMaxineWaters reiterates her call on FB to impose a moratorium on @Libra_ development until qs are answered #LibraInDC
.@RepMaxineWaters is running through concerns about FB's asset holdings and housing concerns now #LibraInDC
47 attorneys general are now participating in an antitrust investigation of @facebook, @RepMaxineWaters says #LibraInDC
Here's a link I haven't yet read on the antitrust thing #LibraInDC washingtonpost.com/technology/201…
The impact of [@facebook's decision not to police political ads] will lead to voter suppression(?), Waters says #LibraInDC
"We have serious concerns about your plans to establish a digital currency that would challenge the U.S. dollar," @RepMaxineWaters says, adding that @Libra_'s raised a concern on whether FB should be broken up #LibraInDC
Innovation is on trial today, ranking member @PatrickMcHenry says in his opening statement #LibraInDC
.@PatrickMcHenry cracks a joke about how it's now a cultural phenomenon that people check their phones often: "Most of [those] in this room are doing so right now" #LibraInDC
You're here today to answer for the digital age, @PatrickMcHenry tells Zuckerberg #LibraInDC
During the last hearing, some members compared the technology behind @Libra_ to the terrorist attacks of 9/11, @PatrickMcHenry says (that was @BradSherman ) #LibraInDC
"Are we going to spend our time trying to build a brighter future for Americans or are we going to tear each other apart?" @PatrickMcHenry says in his closing #LibraInDC
Zuckerberg now opening his testimony: "As we sit here, there are more than a billion people around the world who don't have bank accounts ... people pay far too high a cost and wait far too long to [send money]" #LibraInDC
"I believe this problem can be solved, and @Libra_ can help," Zuckerberg says #LibraInDC
.@Libra_'s purpose is to "put power in people's hands," Zuckerberg says (you can read his full testimony coindesk.com/facebooks-ceo-…) #LibraInDC
Before we move forward, there are important risks that need to be addressed ... but I also hope we get to talk about the risks of not innovating, Zuckerberg says, before mentioning China's central bank digital currency #LibraInDC
"I don't know if @LIbra_ is going to work, but it's important to try," Zuckerberg says #LibraInDC
"I want to be clear, @facebook will not be a part of launching the @Libra_ payment system anywhere in the world until it's [approved by US regulators]," Zuckerberg says (note: FB's subsidiary is on Libra Assn but FB itself isn't, so what role is it playing exactly?) #LibrainDC
I guess the other potential point is Zuckerberg is saying /facebook/ won't be part of launching Libra, but doesn't mean other assn members are bound to that #LibraInDC
.@RepMaxineWaters' first question seems to be about information sharing (political ad policy, which "gives politicians a license to lie"). #LibraInDC
FB blocked cryptocurrency ads last year citing potential for them to be "misleading and deceptive", before rolling back this year. @RepMaxineWaters asks "what changed?" #LibraInDC
"You change your policy when it benefits you. You reinstate cryptocurrency ads when [you want to launch one] ... which brings me back to" recent political ad q: how does this benefit you? @RepMaxineWaters asks #LibraInDC
"Look, from a business perspective, the very small percent of our business that comes from political ads does not justify the controversy," Zuckerberg says, before adding that "having ads can be an important way to inject [your voice]" #LibraInDC
"Are you telling me you're doing no fact-checking on political ads?" @RepMaxineWaters asks #LibraInDC
"It is our policy not to fact-check political ads. We believe it is important for people to" something about seeing what people say, Zuckerberg says #LibraInDC
"You don't do any fact-checking?" "[something]" "Someone fact-checks ads?" "Yes." - @RepMaxineWaters and Zuckerberg #LibraInDC
Waters' time has expired and @PatrickMcHenry is now asking Zuckerberg about his view on China and tech and how that's changed in the last 10 years #LibraInDC
Zuckerberg says his views have changed. McHenry asks why @Libra_ and why not the US, Z starts to say something about Switzerland #LibraInDC
"Switzerland has certainly been forward-thinking on systems like this" Zuckerberg says #LibraInDC
"You have no payments platform on Facebook?" @PatrickMcHenry asks #LibraInDC
Zuckerberg says no (anyone know what the @messenger payments thing qualifies as?) #LibraInDC
"We're trying to help rethink what the modern infrastructure ... is," Zuckerberg says #LibraInDC
.@PatrickMcHenry is trying to hone in on why is FB building a crypto: "Alipay has 900 million ussers ... we see Alipay and WeChat pay working. Why not just do a Facebook version of this?" #LibraInDC
"Part of the infrastructure that they're building on is a lot more modern than some of what we have to build on here," Zuckerberg says in response #LibraInDC
.@RepMaloney is now up, asking which regulators FB needs approval from before launching @Libra_: "Will you need to see written approval?" #LibraInDC
Zuckerberg says "all of them," so that's the SEC, FinCEN, etc #LibraInDC
"Just to be clear, will you commit" to not launching Libra until every regulator signs off? @RepMaloney asks #LibraInDC
"Will you commit to not supporting any other anonymous wallets for Libra? I consider this a national security issue," @RepMaloney asks #LibraInDC
"What we're trying to do is build a safe and secure and regulated alternative [to the decentralized and deregulated currencies]" Zuckerberg says. #LibraInDC
"I don't think you can have strong anti-money laundering controls and anonymous wallets ... well I see this as a new loophole for criminals looking to hide ... what is your position on anonymous wallets?" @RepMaloney asks #LibraInDC
I will commit that /facebook/ will do what you're saying. Our version of this, our wallet is going to have strong identity, we're going to work with regulators to make sure that we are at the standard of AML and CFT, Zuckerberg says #LibraInDC
.@RepAnnWagner is asking why so many companies dropped out of the Libra Assn before it formed coindesk.com/ebay-stripe-fo…
"Because it's a risky project," Zuckerberg says. "It is a risky project," @RepAnnWagner notes, before asking about child sex abuse apparently on FB #LibraInDC
.@RepAnnWagner wants to know what @facebook is doing about child exploitation on its platform: "What are you doing to shut this down? What are you doing, Mr. Zuckerberg, to shut this down?" #LibraInDC
Zuckerberg says he thinks FB is doing more than any other company to reduce child exploitation: "I don't think Facebook is the only place on the internet where this behavior is happening." #LibraInDC
Zuckerberg does not answer @RepAnnWagner's questions to her satisfaction; she says she'll submit more "and we will talk about this." #LibraInDC
Rep @NydiaVelazquez asks about data protection, citing FB's past record #LibraInDC
"We're now basically building out a privacy program for people's data that is parallel to what [someone's?] requirements would be for a public company on people's financial data," Zuckerberg says #LibraInDC
"Do you realize that you and @facebook have a credibility issue here?" @NydiaVelazquez asks. #LibraInDC
"I understand that we have to work to build trust on this and that means making commitments," Zuckerberg says #LibrainDC
"Have you learned that you should not lie?" @NydiaVelazquez asks (Couldn't hear the response due to laughter) #LibraInDC
"I hope you learned something about not lying," @NydiaVelazquez says before pivoting to Libra: "Facebook's mantra has been 'move fast and break things.'" #LibrainDC
"Will you commit to not launching until Congress - /not/ the regulators ... - but Congress can [pass legislation?]" @NydiaVelazquez says #LibraInDC
Zuckerberg says something that I missed, but @NydiaVelazquez responds with "That's a no" #LibraInDC
.@RepFrankLucas asks Zuckerberg how he's going to convince unbanked individuals who don't trust banks or Facebook to use @Libra_ #LibraInDC
Zuckerberg says the approach would be to send Libra out into the world and see what the market does #LibraInDC
.@RepFrankLucas's next question is about deep fakes and how to address those #LibraInDC
Zuckerberg says FB is currently working on what the policy should be to differentiate between media manipulated by AI tools like deep fakes with the intent to mislead people vs content that might just have been cut differently #LibraInDC
"Experts have suggested that we need to educate the public on how to consume trusted information ... what do you see as Facebook's role?" @RepFrankLucas asks #LibrainDC
Zuckerberg says he's got an announcement on this coming out later this week. #LibraInDC
How much of Facebook's money is invested in minority projects? "Have you invested in any other minority development?" @RepGregoryMeeks asks #LibraInDC
Zuckerberg says a lot of people are not served around the world. @RepGregoryMeeks: "I understand it's beyond the US but we're here right now." #LibraInDC
"I don't even know when you talk about international ... whether or not you're going after the underbanked and unbanked [in the US]" @RepGregoryMeeks says #LibraInDC
.@RepGregoryMeeks is asking about disinformation etc on a number of global issues including Brexit ie #LibraInDC
.@congbillposey is asking several questions about how @facebook can prevent or reduce misinformation about vaccines ie from being spread on its platform. Zuckerberg says the company can modify search algorithms etc #LibraInDC
Today is Rep @BradSherman's birthday, and he's now been recognized. #LibraInDC
.@BradSherman is introducing a report about crypto I think but not sure which report. #LibraInDC
"I was anti-cryptocurrency back when you were anti-cryptocurrency," @BradSherman says. "It either doesn't work" or it's trying to displace the US dollar. #LibraInDC
"It serves all the needs except it's really bad for tax evaders, drug dealers and terrorists. And that unmet need can be met by a new currency." #LibraInDC
"Those who are introducing cryptocurrency have got to pause and wonder what effect they'll have on the power of the United States to impose sanctions right now," @BradSherman says #LibraInDC
^ not sure how much of the crypto space sees that as a bad thing, actually
Zuckerberg still hasn't answered @RepMaloney's question, @BradSherman says #LibraInDC
"How do you do know-your-customer with an anonymous account?" @BradSherman asks #LibraInDC
The poor and unbanked need pesos and dollars to buy items at local stores, @BradSherman says #LibraInDC
"I know you've got 100 lawyers who will tell you that what you're doing is legal and that you'll be safe ... but they could be very wrong. And if this explodes ... you will not be able to hide behind the idea that you didn't create the Libra org," @BradSherman says #LibraInDC
Sherman appears to have run out of time; Chair Water was tapping her gavel when he wrapped up #LibraInDC
.@RepBlaine Luetkemeyer asks how Libra will be able to innovate and adapt and still conform to regulations #LibraInDC
"I think we'll have to see how this process plays out," Zuckerberg says. #LibraInDC
"Are you willing to stop this project if you can't see it going forward anymore?" @RepBlaine asks
"I will stop @facebook's part of it," Zuckerberg says, adding he doesn't control the other Libra members. #LibraInDC
.@RepBlaine asks how Libra will avoid reducing the dollar's dominance #LibraInDC
"Because it's reserve will be primarily US dollars I think a project like this could be important for extending America's financial leadership," Zuckerberg says #LibraInDC
"I appreciate that you're pointing out that China is doing this," @RepBlaine says. "Now, I think right now that ..." Libra is 50% U.S. dollars- #LibraInDC
"I don't know if that's been fully finalized," Zuckerberg said #LibraInDC
"What happens when the board decides that, you know, the Chinese yuan (yen?) suddenly ... looks to be a very stable currency" and the dollar's role is diminished in the basket? @RepBlaine asks #LibraInDC
Zuckerberg says maybe a regulation requiring dollars to be in the Libra basket would be a solution to that #LibraInDC
We're now on a line of questioning about ads and data on users' race by Rep @LacyClayMO1 #LibraInDC
"You've done something I didn't think was possible" @RepHuizenga says -- @RepMaxineWaters, @BradSherman and others not only agreed with @RealDonaldTrump, but cited his tweets #LibraInDC
"What share of @Libra_ is Facebook?" @RepHuizenga asks. "How does the voting go?" #LibraInDC
.@davidmarcus is running @calibra, but not @Libra_, Zuckerberg says. @Libra_ Assn is looking for an independent director, and Marcus isn't on the search committee #LibraInDC
.@RepHuizenga wants to clarify if @davidmarcus or other members of the team have been speaking to Swiss regulators #LibraInDC
Zuckerberg says @davidmarcus had previously been talking to FINMA, the financial regulator and not the data regulator #LibraInDC
.@RepHuizenga asks Zuckerberg for a full list of international regulators @facebook has been talking to, as well as a list of US regulators #LibraInDC
"What happens if the association decides to launch despite" @facebook not receiving the regulatory approvals Zuckerberg has said they're waiting for, @RepHuizenga asks #LibraInDC
Zuckerberg; "We will be in a position where we will not be a part of the association." #LibraInDC
.@repdavidscott is asking about housing and lending laws and why FB doesn't prevent red-lining ("which is also illegal and criminal as well") #LibraInDC
"We do now. Our policies have always been that discrimination is not allowed." Zuckerberg says, again citing a settlement w/ ACLU #LibraInDC
.@RepSteveStivers is following up on whether advertisers can restrict age or locations when advertising housing #LibraInDC
"Why not pick another currency? You're going to make money with the transmission ... why did you think you had to create a private currency?" @RepSteveStivers asks #LibraInDC
"The goal of Libra is to build a global payments system, rather than a currency. Because it is global in nature, we figured it might be better to not rely on one country's sole currency," Zuckerberg says #LibraInDC
.@RepSteveStivers says he thinks FB might find it easier to use an existing currency rather than building its own #LibraInDC
"Is it true that the @Libra_ Assn oversees the Libra project?" @RepAlGreen asks #LibraInDC
Zuckerberg: "Yes."
@RepAlGreen: "And is it true global companies make up the association?"
Zuckerberg: "Yes." #LibraInDC
"And how many are headed up by women?" @RepAlGreen asks. Zuckerberg says he does not know. Rep Green also asks how many companies are headed up by minorities or members of the LGBT community. Zuckerberg repeats. #LibraInDC
"Is it true the overwhelming majority of persons associated with this endeavor are white men?" @RepAlGreen asks #LibraInDC
"I don't know," Zuckerberg says #LibraInDC
"Is it true that one would have to have $10 million to become a part of the association?" @RepAlGreen asks #LibraInDC
"I believe that was the initial idea but I don't think that has been locked down," Zuckerberg says. #LibraInDC
The public deserves to know if the project's operated by a small group of persons who presumably match certain characteristics [this is paraphrased], Rep Green says before mentioning Bernie Madoff #LibraInDC
.@RepAlGreen notes that he's not accusing Zuckerberg of being similar to Bernie Madoff, but that "things can happen" and victims turn to Congress to make them whole #LibraInDC
.@RepAndyBarr says it's cheap to criticize, something about socialism "but in America, a country built on free enterprise and capitalism, it's always better to be on the side of innovation," and asks Zuckerberg to elaborate on other nations' efforts to get into crypto #LibraInDC
Zuckerberg says China in particular's been working on its own digital currency (@WolfieZhao has done a lot of reporting around this coindesk.com/chinas-digital…) #LibraInDC
.@RepAndyBarr asks Zuckerberg to commit to not censoring "any political ad placed on your platform in support of President Donald Trump" referencing Zuckerberg's speech from last week where he I believe made a soft commitment to not doing that #LibraInDC
.@repcleaver asks about the Financial Stability Oversight Council and how Libra will deal with the concerns #LibraInDC
Zuckerberg says there are two parts to this process: the first is designing the system to eliminate regulator concerns, make sure reserves are fully backed so as to avoid fractional reserve operations, etc #LibrainDC
"I get that sometimes there are additional risks beyond [what] this theory says should be possible," Zuckerberg added. #LibraInDC
.@RepTipton is asking about Facebook as a payments system. Zuckerberg says FB has not been a payments platform, though @davidmarcus was previously at @PayPal and has experience in that area #LibraInDC
"What assurance is actually going to be in place to make sure most sensitive information [isn't leaked]," @RepTipton asks. Zuckerberg says financial information w/ @calibra would be stored separately of @facebook data #LibraInDC
A 5-min recess just ended; hearing's back on and @RepPerlmutter is now up #LibraInDC
.@RepPerlmutter wants to clarify if @facebook will seek regulatory approval or will /get/ regulatory approval prior to launch. Zuckerberg says it's the latter #LibraInDC
Zuckerberg is taking 30 seconds to clarify that @facebook has implemented a change to prevent certain selection in ad targeting but it's an ongoing process and will finish by EOY #LibraInDC
.@RepPerlmutter wants to clarify: Is @Libra_ a currency, is @facebook a bank, etc: "We like innovation, but it seems this innovation is going to be housed in Switzerland" #LibraInDC
Constitution gives US gov the ability to create money. @RepPerlmutter asks Zuckerberg if he considers @Libra_ to be money #LibraInDC
"We consider it to be a payments system," Zuckerberg says again. @RepPerlmutter: "So you don't consider it to be money?" #LibraInDC
.@RepPerlmutter says he considers @calibra to be the bank to @Libra_'s money #LibraInDC
.@RepPerlmutter says he's trying to understand what this is, and while he likes innovation, he'd prefer it not be in Switzerland. #LibraInDC
"Mr. Zuckerberg, are you a capitalist or are you a socialist?" asks @RepRWilliams #LibraInDC (Zuckerberg said capitalist)
"The private sector always gets it right, most of the time," @RepRWilliams says before asking Zuckerberg why the private sector should be the one to create a digital currency vs the @federalreserve or another govt entity #LibraInDC
Zuckerberg says he doesn't think @Libra_ trying to launch a crypto should preclude other parties from also looking into it #LibraInDC
.@RepRWilliams asks Zuckerberg to repeat what other countries are doing in this space, particularly China. #LibraInDC
.@jahimes, who also sits on @HouseIntel, is discussing how many ads on @facebook were purchased by Russia and other nations during the 2016 election, before seguing to the protections inherent to freedom of expression #LibraInDC
"Apparently half of Americans get their speech from Facebook" @jahmes says #LibraInDC
"Tell us what investment you're making so that this freedom of expression you're enabling is a good thing, rather than a bad thing," @jahimes says #LibraInDC
.@RepFrenchHill: "We don't want to punish the @Libra_ Assn for something that doesn't even exist yet but I was reading the G7 report ... that @davidmarcus participated in ..." 1/ #LibraInDC
"... that says no global stablecoin project should begin operations until the regulatory oversight challenges of the risks outlined are adequately addressed ... do you agree with that statement?" - @RepFrenchHill #LibraInDC
Zuckerberg says he hasn't reviewed the report but "we understand that ... this is an area that's very sensitive." #LibraInDC
.@RepFrenchHill asks about the digital dollar suggestion, to which Zuckerberg says "I understand the community is fairly split on this point," adding that it might be easier from a US perspective but @Libra_ is trying to be global #LibraInDC
.@RepBillFoster is asking about how users authenticate their own data and if there'd be any technical issues in the implementation of this #LibraInDC
Will Libra allow any untraceable, anonymous transactions? @RepBillFoster asks #LibraInDC
Zuckerberg: "Well @calibra-"
@RepBillFoster: "@Libra_," not Calibra #LibraInDC
Zuckerberg, after much elaboration from @RepBillFoster, appears to say it is possible for @Libra_ to enable anonymous transactions #LibraInDC
.@RepBillFoster says that based on the current code, it does appear anonymous transactions are possible but tells Zuckerberg to get back if there's further clarity here. #LibraInDC
.@RepBillFoster asks about how to deal with mistaken transactions. Zuckerberg says he's not sure if a policy for that's been created yet #LibraInDC
"You haven't thought about it?" @RepBillFoster asks #LibraInDC
"We have thought about it we just haven't nailed down" the final policy yet, Zuckerberg says #LibraInDC
.@RepLoudermilk takes a dig at the whistleblower proceedings, thanking @RepMaxineWaters for holding a hearing in the light of day and not behind locked doors "like other" hearings #LibraInDC
"You're both very successful businessmen," @RepLoudermilk says in comparing Mark Zuckerberg with @RealDonaldTrump #LibraInDC
.@RepLoudermilk says his questions are around how Libra would operate because he doesn't see it "fitting in a box;" etc
"Do you believe @Libra_ is systemically important, especially since you're calling it a payment system, which is really done by central banks?" @RepLoudermilk asks #LibraInDC
"The distinction on what is systemically important ... is that a big part of that is scale," Zuckerberg says. #LibraInDC
"... I think it's worth noting that just because @facebook serves a lot of people around the world doesn't mean that if we rolled out a product on day one that all those people would be using it." Zuckerberg says #LibraInDC
.@RepBeatty wants to ask a number of questions on diverse asset management, fair housing issues, diversity, inclusion, privacy and security #LibraInDC
.@RepBeatty is nailing Zuckerberg on civil rights issues around @facebook, asking who's chairing its civil rights group (Sheryl Sandberg, who apparently has no background in this area), which company is handling its civil right issues (he doesn't know), etc #LibraInDC
Zuckerberg was unable to answer @RepBeatty's questions about its civil rights issues #LibraInDC
Rep @WarrenDavidson, who previously asked @Melt_Dem to define the term "shitcoin" during the last #LibraInDC hearing, is now up
.@WarrenDavidson asks Zuckerberg to explain his views around cryptocurrency tech #LibraInDC
"I think that the US financial industry and especially infrastrcutrue on top of which to build financial services is just frankly behind where it needs to be to innovate and continue American leadership," Zuckerberg tells @WarrenDavidson #LibraInDC
The US needs better regulatory clarity [paraphrased], @WarrenDavidson says, citing Switzerland as an example of a country that does have a more clear regime #LibraInDC
"We've been very sloppy with our language," @WarrenDavidson says. "[We've] collectively called everything in the space [a] 'cryptocurrency' where many of these tokens don't aspire to be a currency at all and just represent a good or service." #LibraInDC
.@WarrenDavidson adds on that cryptos are more decentralized, Zuckerberg adds that Libra isn't trying to make a currency but a payments system #LibraInDC
"I'm almost tempted to ask, when you were compared to Mr. Trump did you take that as a compliment?" @RepJuanVargas jokes (he tells Zuckerberg not to respond, even with a smile, to which Zuckerberg goes "hmm?") #LibraInDC
"If you want to follow US rules, why go to Switzerland?" @RepJuanVargas says #LibraInDC
Zuckerberg: "The independent @Libra_ Association-" "They don't seem to exist without you. You're the big dog ... you could decide to be in the United States ... I believed you up to now but that I don't believe," @RepJuanVargas says #LibraInDC
.@RepTedBudd says a distinction should be made between @Libra_ and actual cryptocurrencies like $BTC, $ETH and $XRP #LibraInDC
"It's notable that every US payment processor has exited the [@Libra_] Association," @RepTedBudd says #LibraInDC
"With no major US payment processors left in the Libra Association, how do you see yourself building a compliance regime that adheres to the AML, BSA [regime] that this body has put in place?" @RepTedBudd asks #LibraInDC
"I think we have the right expertise to work through these problems and we will work with regulators to come up with solutions," Zuckerberg says #LibraInDC
How does Libra align with FB's earlier claims of wanting to build a pro-privacy future? @RepTedBudd asks #LibraInDC
We're working on a number of different approaches here to work on, Zuckerberg says #LibraInDC
Rep @JoshGottheimer is now up, asking Zuckerberg if terrorist groups should have the right to have social media accounts, specifically @Twitter #LibraInDC
Zuckerberg says it's not for him to say what Twitter should do but in principle he believes American companies should comply with American law #LibraInDC
.@JoshGottheimer segues into whether it troubles Zuckerberg that there are videos of the Christchurch shooting still circulating on @facebook #LibraInDC
How do we maintain a competitive advantage and grow tech jobs in the US, @JoshGottheimer asks #LibraInDC
"Most of the work I think is still being done here in the US. I think the biggest question for the future is competitive risks of building anything here in the financial services," Zuckerberg said #LibraInDC
"What did you tell your board of directors" when this idea of monetizing Libra, @RepDavidKustoff asks #LibraInDC
"Well Congressman, you may not believe this but that's not actually the first thing we talked about ... we focused on building services that are going to create value in people's lives," Zuckerberg says before adding that it could increase ad values #LibraInDC
"Facebook also becomes a marketplace for goods sold using [Libra]?" @RepDavidKustoff asks. Zuckerberg says yes, and that's a separate area, citing Facebook Marketplace and Instagram Shopping #LibraInDC
.@GuamCongressman says @facebook has brought a lot of opportunities for people to take advantage of, asking Zuckerberg if he ever imagined it'd reach the scale that it has today (Zuckerberg says he didn't think so but imagined someone would build a platform like it) #LibraInDC
.@Libra_ is a currency and payment settlement platform ... I heard you say earlier that Libra is an asset-backed currency where 'you put a dollar in, you get a dollar out' but that is virtually impossible, @GuamCongressman says, noting that Libra's backed by a basket #LibraInDC
The fact that currencies fluctuate differently is why it might be difficult to withdraw fiat at a 1:1 ratio, @GuamCongressman says. This is why currency markets use swaps and leverage #LibraInDC
"The main question I really want to have answered is 'if Libra fails, who's going to be responsible for that?'" @GuamCongressman asks #LibrainDC
"The @Libra_ Assn will have the reserve but I understand this is an important question and we will be working ... to make sure we have a solution," Zuckerberg says #LibraInDC
Is the goal still to transition @Libra_ to a permissionless blockchain? asks @RepAGonzalez #LibraInDC
"I think that is the aspiration," Zuckerberg says. "So that's a yes" #LibraInDC
.@RepAGonzalez asks how Libra will comply with all regulations, given different countries/regions have different regulatory regimes #LibraInDC
Zuckerberg clarifies he's testifying for @facebook, but not @Libra_ #LibraInDC
.@RepAGonzalez asks Zuckerberg to again state he'd pull FB (and I guess @calibra?) out of @Libra_ should the association do something FB cannot agree to on a regulatory front #LibraInDC
.@RepAGonzalez says he doesn't disagree that China is trying to build a crypto, but thinks the framing as Mark Zuckerberg vs Xi Xinping is off #LibraInDC
Rep @RashidaTlaib asks if it's still @facebook's policy to ban hate groups (Zuckerberg says yes) #LibraInDC
.@RashidaTlaib references a photo of a person holding a rifle outside a mosque, asking Zuckerberg if that meets @facebook's community standards, saying hate groups are organizing using FB #LibraInDC
Zuckerberg says he isn't in a position to evaluate the photo #LibraInDC
.@RashidaTlaib asks Zuckerberg if he's endorsing hate groups on @facebook; Zuckerberg says "I would personally condemn" the photo, adding FB misses things though they're working on it, and there are nuances to sharing such photos (like if someone shares to condemn) #LibraInDC
.@RashidaTlaib: "Why should politicians be held to a lower standard for truthfulness?"
Zuckerberg: "This is about making sure people can see for themselves-"
Tlaib: "This is hate speech." #LibraInDC
.@RashidaTlaib ran out of time; Zuckerberg asks if he can "provide context"; @RepMaxineWaters says "there are people waiting" and therefore no we're moving on #LibrainDC
.@RepJohnRose is up, asking how Libra will launch in a way that people will trust the technology. Zuckerberg says regulations are clear, so people won't need to trust the company, they can just trust the govt #LibraInDC
"If hackers find a way to hack the technology, who will be liable?" @RepJohnRose asks #LibraInDC
It would depend on where the vuln is, Zuckerberg says: "This is why I'm committed we don't ship anything until we have clearance from all appropriate regulators." #LibraInDC
Zuckerberg asks for a break after the next round of qs, noting he's "drinking a lot of water." #LibraInDC
.@RepKatiePorter: If you care about privacy ... why are you arguing @facebook in federal court that consumers can't hold you liable for data breaches? #LibraInDC
"I'm not familiar with this argument," Zuckerberg says #LibraInDC
.@RepKatiePorter asks Zuckerberg if he'll commit to withdrawing its pleadings from federal court. Zuckerberg doesn't really answer, but Porter says she'd like him to think about #LibraInDC
.@RepKatiePorter has moved on to asking about contractors responsible for content monitoring and the benefits available to them (which apparently include 9 min of 'wellness time' every day?) #LibraInDC
.@RepKatiePorter asks Zuckerberg to commit to watching one hour of the material that content monitors watch every day for a year. Zuckerberg says he doesn't think that'd be the best use of his time #LibraInDC
"Are you not qualified?" @RepKatiePorter asks [paraphrased a little]. Zuckerberg says [something]. Porter: "You're saying you're not going to do it." #LibraInDC
"How many lobbyists are on your payroll?" @RepKatiePorter asks. "I don't know the answer to that," responds Zuckerberg. "60," says Porter #LibraInDC
We're still in recess, but apparently there's a vote on the House floor right now. @RepMaxineWaters has asked members to vote quickly and return. We're now going into hour five of this hearing and by my count some 25 members have yet to ask any questions. #LibraInDC
Looks like we're back. Rep. @Lancegooden is asking for further clarity around the @Libra_ Association #LibraInDC
Zuckerberg says the companies that pulled out of the Libra Assn could have invested but he isn't sure what they were thinking #LibraInDC
.@Lancegooden asks why not base in the US: "The idea that we've got a great American company like @facebook and a great American success story about yourself who's pushing this idea on foreign soil ... why not bring this to the United States?" #LibraInDC
Zuckerberg said @calibra and other products, like @messenger, are being developed in the US #LibraInDC
"I would implore" you to build in the US, @Lancegooden says to Zuckerberg #LibraInDC
.@RepCindyAxne now up, says she asked her constituents what questions to ask, and has entered those into the record. She also commented briefly on misleading ads attacking candidates bought by foreign powers, "targeting swing states" #LibraInDC
"Do you collect data on people who don't even have an account on @facebook?" @RepCindyAxne asks #LibraInDC
Zuckerberg says there are instances where an app or website might send signals to @facebook "from things that they're seeing." #LibraInDC
.@RepCindyAxne is asking what limits @facebook can build to protect the data of folks who aren't signing up for FB profiles from being collected #LibraInDC
"What actions are you taking or are willing to take to ensure that people who don't have a @facebook account have the power to limit the data that your company's collecting?" @RepCindyAxne asks #LibraInDC
.@RepRiggleman is now up, asking how realistic The Social Network is (I have real some questions, he adds) #LibraInDC
Do you think it's possible to build a rule set or algorithmic rule set, some kind of rule-based machine learning thing where you can ... have the AML/BSA aspect? @RepRiggleman asks #LibraInDC
"We're certainly looking at whether elements of the AML/KYC regulations can be encoded at the network level and not just at the level of the individual wallets or payment companies involved," Zuckerberg said. #LibraInDC
.@RepRiggleman asks if it's possible to tag attributes to a transaction rather than entities to see if there's activity around a token: "In other words, if I'm not going into the privacy portion of this, can we actually track what's happening with that token?" #LibraInDC
"We likely will explore security measures like that," Zuckerberg says #LibraInDC
Just to analogize to another area of our work in preventing nation-states from trying to interfere in the democratic process or just looking at patterns of activity ... and then we can pass that along to the FBI or the relevant law enforcement, Zuckerberg says #LibraInDC
"I really am excited about seeing how this goes along," @RepRiggleman says, joking that Tom Cruise will play him in The Social Network 2 #LibraInDC
.@RepCasten starts out by asking Zuckerberg about a meeting he had with @realDonaldTrump and some Senators, asking if an antitrust investigation came up. Zuckerberg says the meeting was private and he's not comfortable commenting on it #LibraInDC
.@RepCasten asks if Jenny McCarthy were to post a video about not vaccinating kids, would that be taken down. Zuckerberg says he can't comment on a hypothetical without seeing the post #LibraInDC
.@RepCasten also asks about a Nazi candidate posting hateful speech #LibraInDC
.@RepTomEmmer: "I think I an safely say that this is at least the second time [of testifying?] before Congress where members end up looking like they have invested absolutely no time learning about new technologies in order to question responsibly." #LibraInDC
"I think that's a fair takeaway from this hearing. Congress is nowhere close to catching up with some of the most basic changes happening in our society. I'd like to thank the Republican leader [...]" @RepTomEmmer says #LibraInDC
It's important to distinguish public and private networks, @RepTomEmmer says #LibraInDC
"Unfortunately my colleagues have offered several proposals in conjunction with this hearing that could have a tremendously harmful impact on innovation in the U.S." @RepTomEmmer says. #LibraInDC
"A few of these provisions appear to apply securities regulation beyond actual securities," @RepTomEmmer says #LibraInDC
I intend to introduce a bill that will make it clear as long as you register as a security or exemption under [existing laws] you will not continue to [face] prosecution from a regulator, [paraphrased], @RepTomEmmer says #LibraInDC
What have you done to engage with the crypto community? Asks @RepTomEmmer #LibraInDC
Rep @AyannaPressley: Facebook is Libra, and you are Facebook #LibraInDC
.@AyannaPressley asks why the public should trust @facebook or @Libra_, whether Zuckerberg would leave his children's inheritance behind in Libra, etc #LibraInDC
.@RepTrey asks about the architecture of Libra and how it'd lower transaction costs etc #LibraInDC
People operate in separate global economy, a separate system, @RepTrey says, adding that he believes Zuckerberg when the latter says his goal is to help folks #LibraInDC
.@RepBenMcAdams is now up, saying he's troubled by the role the internet plays in children's lives. He's following up on @RepAnnWagner's previous line of questioning on @facebook's role in child exploitation #LibraInDC
Do you believe that online social media platforms such as @facebook have a role to play, even an obligation, to ensure that their platforms are safe for our vulnerable populations, especially our children? @RepBenMcAdams asks #LibraInDC
.@RepBenMcAdams asks why @WhatsApp only reports a fraction of the child exploitation instances @messenger does: "Is it because it's end-to-end encrypted?" #LibraInDC
Zuckerberg says yes #LibraInDC
"I'm concerned about messenger's end-to-end encryption, with a cryptocurrency rocket fuel," @RepBenMcAdams says. "A move to encryption will" only increase the danger [I think?] #LibraInDC
.@AOC is now up: "In order to make decisions about @Libra_, I think we need to dig into your past behavior ... in what year and month did you first become aware of Cambridge Analytica?" #LibraInDC
Zuckerberg says he isn't sure; also says he's not sure when FB COO Sheryl Sandberg was aware or if any member of his team was aware prior to an article in 2011(?) #LibraInDC
"You announced that the official policy of @facebook is to allow politicians to pay to spread misinformation ... I want to know how far I can push this," @AOC says #LibraInDC
Zuckerberg says there's some checks in place #LibraInDC
"But you said you're not going to fact-check politicians?" @AOC says #LibraInDC
Zuckerberg says there'll be some fact-checking to prevent voter suppression etc #LibraInDC
"So you won't take down lies or you will take down lies?" @AOC asks #LibraInDC
Zuckerberg says it'll depend on context #LibraInDC
.@AOC asks about far-right figures claiming white supremacy is a hoax. Zuckerberg doesn't catch the question #LibraInDC
.@RepWexton now asking about how the payment system for @Libra_ will be handled (it's the association, which is a not-for-profit), while @calibra is a for-profit: I'm kind of curious where you're making your money from #LibraInDC
Zuckerberg says they won't use financial data for advertising but, well, ads go up I think #LibraInDC
.@RepWexton is moving onto @facebook's disinformation plan for the 2020 election #LibraInDC
.@RepDean asks if @facebook is doing any business with Trump's hotels. Zuckerberg says he's not sure and would be surprised if it happened #LibraInDC
Zuckerberg says if anyone from @facebook is trying to curry favor with Trump by using his business's properties he'd be worried about it [paraphrased heavily] #LibrainDC
.@RepDean is moving onto trust: "Before we move on to Libra let's look back" at FB circa 2009-2011 #LibraInDC
.@RepDean seems to call @Libra_ a payment system of a shadow currency, quoting a past Zuckerberg comment where he said @facebook "is more like a government" #LibraInDC
.@RepAdams is asking how regulators can trust @facebook won't discriminate with offering Libra #LibraInDC
"It wouldn't be in our interest," Zuckerberg says #LibraInDC
Should Libra be regulated as a bank? Asks @RepChuyGarcia #LibraInDC
Zuckerberg says no, kind of #LibraInDC
Should Libra be regulated by the SEC? - @RepChuyGarcia #LibraInDC
Zuckerberg says he thinks the SEC is discussing it but doesn't answer to @RepChuyGarcia's satisfaction
"I don't think we can trust you," @RepChuyGarcia says to @facebook's Zuckerberg. He's introducing the 'Keep Big Tech Out of Finance' Act in response #LibraInDC
Apparently @facebook is worth more than 137 UN members? #LibraInDC
.@RepSylviaGarcia, who intro'd the "stablecoins are securities" draft bill yesterday, is now up (coindesk.com/us-lawmaker-in…) #LibraInDC
.@RepSylviaGarcia asks Zuckerberg if he believes @Libra_ is a stablecoin #LibraInDC (again -- that 'stablecoins are securities' bill is probably significant to this question)
I think your goal of banking the unbanked is laudable, I just don't think [it'll happen?], @RepSylviaGarcia says #LibraInDC
We've talked to the @federalreserve, Mark Zuckerberg tells @RepSylviaGarcia #LibraInDC
Now up: @RepDeanPhillips, starting out with ads in the 2016 election #LibraInDC
"At that time, @facebook was aware federal law precluded foreign governments from spending money to influence an election?" @RepDeanPhillips asks #LibraInDC
Zuckerberg says he's sure his legal team was aware, but @facebook didn't check govt IDs at the time #LibraInDC
Will @facebook accept @Libra_ as payment for advertisements? @RepDeanPhillips asks #LibraInDC
If it proceeds, I imagine it will, Zuckerberg says [paraphrased] #LibraInDC
You understand what will be a collective concern is if you can use Libra to buy ads on facebook and you can be anonymous, the potential challenge that we face? @RepDeanPhillips asks #LibraInDC
Zuckerberg says it'll require verification still #LibraInDC
Zuckerberg says Facebook will verify IDs for ad purchases #LibraInDC
.@RepGonzalez now up, says the 2020 Census is coming up, which is important to his district as it has been "historically undercounted." He asks if FB would allow an ad that tells immigrants their information would be shared with Immigration and Customs Enforcement #LibraInDC
Zuckerberg says they have a voter suppression policy, which they're extending to a new census suppression policy #LibraInDC
Facebook will take down census suppression ads, Zuckerberg says. New policy to be rolled out in weeks but he can't comment on specifics prior to that #LibraInDC
.@RepGonzalez asks if such ads are something FB would actively seek out or if they could be reported or how that'd work. Zuckerberg says content moderation's a combo of AI/algorithmic search w/ human review #LibraInDC
.@PatrickMcHenry is giving a closing statement: "We've covered I think the full range of topics ... frankly I'm not sure we learned anything new here as policymakers. My fear is we still don't have a deeper understanding of how Libra will work" #LibraInDC
"We don't have clarity" around how Libra will help in financial inclusion #LibraInDC
We've had an opportunity for our members to express what I view as valid concerns, particularly around privacy, @PatrickMcHenry says, "and opportunities for members to express their anger at commonalities of the digital age" #LibraInDC
There are real concerns around the digital age, @PatrickMcHenry says #LibraInDC
This hearing is wrapping up. @RepMaxineWaters is thanking Zuckerberg for attending: "I hope you learned today just how many concerns Congress and the public have, not just with Libra but with FB's diversity," etc #LibraInDC
And at the 6 hour, 1 minute mark, today's @FSCDems / @FinancialCmte hearing with @facebook CEO Mark Zuckerberg has closed. #LibraInDC
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