Facebook has finally revealed the governing body of the Libra Association and Crypto custodian company Anchorage is one among 21 members that constitute Libra Association council. Anchorage which received a letter sent by U.S. Senator Mike Rounds made headlines today on its involvement with Facebook-led Libra.

Sen.Mike Rounds (R-S.D.) wrote a letter to Nathan McCauley, the president Anchorage Trust, expressing his views on Libra. He termed Libra as the innovative technology and claims that current laws “was written more than half a century before computers and the internet were created”.

Unlike PayPal, Visa, Mastercard and other giants that withdrew their interest from Libra, Senator Mike Rounds recommended Anchorage to stay the course. He mentioned that Libra represents technological advancement and this is necessary to aid US customers. Rounds further agree to Facebook’s vision of financing the unbanked and underbanked by launching Libra and concerned it must start “right here at home [United States]”, adding;

“It would be unfortunate to shun a new solution that could connect more of the most vulnerable Americans to our financial services system.”

Moving forward with the current regulatory system, Rounds asserts that the country lacks a “clear legal way to regulate cryptocurrencies”. In particular, he elaborated that there are no certain regulations set in place to define whether cryptocurrency is a security.

What legal foundation we do have for these types of questions is rooted in the Securities Act of 1933. That law was written more than half a century before computers and the internet were created. 

Recalling the statements of various companies who are active in crypto space, he said that…

[They] have told me that “due to the archaic and inflexible nature of our regulatory and legal system, it is easier for them to operate and even incorporate overseas. That is incredibly disheartening to hear and should be unacceptable to every member of the Senate, he added. 

While other lawmakers haven’t left any stone unturned to criticize Facebook’s attempt of entering into the financial landscape, Rounds’ letter appeared as strong support for Libra, particularly from someone belongs to Congress. He further emphasized that the Federal Reserve “is itself still years away” from creating its own real-time payments platform. He continued;

“Given the length of time it will take for the Fed to finish FedNow, the Libra Association should not wait to see if recent conversations about a Fed-run digital currency come to fruition,” 

Image Source- Twitter @SenatorRounds

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.