Speaking on CNBC, Mnuchin said that if Libra wouldn’t meet US money-laundering standards via the Financial Crimes Enforcement Network, it could open them up to enforcement actions.
U.S. Treasury Secretary Steven Mnuchin said backers of Facebook’s cryptocurrency Libra dropped out of the project over concerns that the stablecoin project would not meet regulatory standards.
“I think they realized that they’re not ready, they’re not up to par”, Mnuchin said. “And I assume some of the partners got concerned and dropped out until they meet those standards.”
Mnuchin said he met with Libra representatives on multiple occasions to reiterate his stance on regulatory enforcement of the stablecoin.
Six major Libra backers – Visa, Mastercard, Stripe, eBay and Mercado Pago along with PayPal – withdraw from the Libra Association, a nonprofit organization designed to govern the new cryptocurrency.
On Friday, a Visa spokesperson told CoinDesk:
“We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.”
The withdrawals were followed by a draft report from the G7 working group on the global stablecoins, evaluating projects like Libra as a potential threat to the international financial stability due to regulatory challenges.
The working group, along with the Financial Stability Board, presented a range of issues circling stablecoins, including data privacy and protection, AML/CFT and KYC compliance, tax evasion, fair competition and market integrity.
US Senator Loeffler Reports 2019 Income of $3.5M From Role as CEO of Bakkt
Per her financial disclosures, filed the evening of May 1 after an extension in January, Loeffler’s assets are significant, as was her income as CEO of Bakkt.
The much-awaited financial disclosures
While Loeffler initially delayed filing her mandatory financial disclosures when she took office in January, they are now available. According to SEC filings by Bakkt’s parent company, the Intercontinental Exchange (ICE), $980,000 of the $3.5 million were in the form of cash, with the rest in the form of equity.
In addition to income of $3.5 million from employment at Bakkt, the new filings display an impressive portfolio of what is likely to be hundreds of millions of dollars in investments.
After controversy over improper trading when Loeffler’s stock portfolio saw a huge sell-off following a closed congressional meeting in January on the coronavirus pandemic, Loeffler said she would divest from her holdings.
Alongside the Friday night filing of the financial disclosure, Loeffler’s team compared criticism based on her wealth to socialism:
“The Left, The Swamp, and career politicians will use my success to attack me – in the same way they’ve attacked our President and his family – because we reject socialism, champion freedom, and unapologetically support the free enterprise system that made this country great.”
Bakkt’s parent company ICE and Loeffler’s husband
Loeffler’s husband, Jeffrey Sprecher, is the CEO of Bakkt’s parent company, ICE. ICE also owns the New York Stock Exchange. In recent SEC filings, Sprecher’s reported income, including equities, was $14.425 million.
Per Roll Call estimations in 2018, only 5 congresspeople were worth more than $100 million at the time. Loeffler is certainly one of the wealthiest, especially when including her husband’s likely net worth.
Given the controversy of Loeffler’s wealth and the fact that Loeffler ascended to office by appointment rather than election, it is perhaps no surprise that a recent poll showed Loeffler as positioned to lose to fellow Republican Doug Collins in November.