US Lawmakers Warn Visa, Mastercard to Think Twice About Joining Facebook’s Cryptocurrenc…

As anxieties mount over Facebook’s plan to launch a cryptocurrency called Libra, US lawmakers are facing increasing pressure to intercede. This week, that intervention has taken the form of ominous letters by Democratic members of the powerful Senate Banking Committee, who warn payment service companies to “expect a high level of scrutiny” if they take on the risks of Libra.

It was additionally announced on Wednesday that Facebook CEO Mark Zuckerberg will be the sole witness at a hearing before the House Financial Services Committee later this month. These moves come amid reports about waning support among companies that committed funding to join the Libra Association, the Geneva-based nonprofit overseeing the project, and Facebook’s own failure to assuage concerns over the stability of the global financial system.

In the letters, Sen. Sherrod Brown, the ranking Democratic member of the Senate Banking Committee, and Sen. Brian Schatz, another Democratic member,…