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The government feared that the scales could replace the dollar

June 16, 2020

David Weild IV, known as the father of the JOBS Act, believes the U.S. government had to intervene to wipe out Facebook’s coin-operated scale.

Facebook: number of active users. Source: Statista

Facebook: number of active users. Source: Statista

The government has to do something

The government feared that the scales could replace the dollarThe government feared that the scales could replace the dollar

In an interview with Cointelegraph, Weild said: When he first heard of Zuckerberg’s initiative, he knew immediately that the government had to intervene:

“When I heard what Zuckerberg was going to do (and this was before the government calmed down), I said ‘the government has to do something’ and was soon elected by the House’s Financial Services Committee a month later, and I’m not surprised”

The Libra could reach the authority of the central bank

Weild believes that Given that Facebook has a 2.5 billion user base, its stable coin could have been a real challenge to the dominance of the US dollar. The fact that Facebook was issued through a foreign entity would mean that the U.S. government had little control over it:

“I mean, given the size of Facebook and the impact of effectively creating a de novo coin basket that could, to some extent, serve as a central bank agency, I thought it had such a profound impact that they had to slow it down as Zuckerberg to get them to Washington and fully understand these questions. “

The SEC was at a legal dead end

When it comes to Telegram’s competitive ICOWeild believes that the government’s main motivation did not eliminate a potential competitor for the dollarbut the need to protect investors from illegal value proposition:

“The government has a legal dead end, a Hobson decision that you have a lot of investors, and if you really aggressively pursue the company, are you doing more harm than good to those investors? Then I think the SEC generally has it strikes a very good balance when you look at some of the fines that were not put out of action. ”

This would help Telegram’s IPO

One of the ironies of the current state of affairs with Telegram’s ICO is that the company must return the $ 1.7 billion to investorsThis could force them to raise capital through traditional means such as an initial public offering (IPO). Wield, a public investment banker, would like to help Telegram if he opts for this option:

“Yes, I hope so, but we have excellent relationships with people, with regulators, and I have great respect for them.”

We don’t know if Telegram is considering going public, but it seems that the days of ICO in the US are over.