The Hidden Political War Behind Facebook Libra’s Shutdown

Cameron Winklevoss Reveals Political Motive Behind Libra's End

Behind the Fall of Facebook Libra: A Political Power Struggle

Cameron Winklevoss, co-founder of Gemini, recently confirmed that the demise of Facebook's Libra project was not just a business setback, but a politically motivated move led by U.S. Treasury Secretary Janet Yellen. 

David Marcus, the former head of the now-defunct stablecoin initiative, has shed light on the behind-the-scenes battle in his post, "How Libra Was Killed." Marcus reveals how the Biden administration torpedoed the project despite it clearing all regulatory hurdles, with Yellen actively blocking Federal Reserve Chair Jerome Powell from giving the green light.

David Marcus Reveals How Politics Killed Facebook’s Libra!

David Marcus, former head of Facebook's Libra project, revealed that political opposition led to its demise. Key points include:

• Libra, launched in 2019, aimed to revolutionize global payments with blockchain and stablecoin, addressing issues like financial crime and money laundering.

• Within two months, Marcus testified before the Senate Banking and House Financial Services Committees.

• Despite extensive revisions to address lawmakers' concerns, political pressure led to the abandonment of the project.

• Libra was rebranded to Diem before being shut down.

Marcus' Personal Take on Libra Project

David Marcus reflected on the rise and fall of the Facebook Libra project, which, by 2021, had met every regulatory requirement needed for a limited launch. Supported by some Federal Reserve governors, the project seemed poised for success. But then US Treasury Secretary Janet Yellen instructed Fed Chair Jerome Powell that allowing Libra would be "political suicide." Soon after, Powell directed all regulated banks to pull support, leading to the project's eventual collapse.

David Marcus described the outcome:

“There was no legal or regulatory angle left for the government or regulators to kill the project. It was 100% a political kill—one that was executed through intimidation of captive banking institutions. That was the hardest part of this story for me personally. Not that we had failed, but that America, this country I immigrated to and became a proud citizen of because of its rule of law and value system, behaved in such a way for political reasons. It was a very tough pill to swallow.”

Crypto Leaders Back Marcus’s Claims on Fed’s Attack on Industry

Top crypto figures like Coinbase CEO Brian Armstrong, Gemini's Cameron Winklevoss, and Custodia Bank CEO Caitlin Long have rallied behind David Marcus’s claims about the Fed’s involvement in Operation Choke Point 2.0, which forced banks to sever ties with crypto firms. 

Winklevoss confirmed his close work with Marcus on the Libra project, which was shut down by federal regulators for political reasons. Long, too, echoed Marcus's sentiments, promising to reveal the truth behind the Fed's actions against Custodia Bank and its political motivations. XRP lawyer John Deaton is calling for a thorough investigation into the matter and recommends Nic Carter as a lead for the inquiry.

Armstrong's Bold Tip for Crypto Innovation

Coinbase CEO Brian Armstrong shared insights on how government pressures, including from Secretary Janet Yellen, have stifled crypto growth, citing past actions against projects like Facebook’s Libra. Armstrong emphasized the importance of releasing new technologies, such as Bitcoin, without seeking regulatory approval. 

He argued that decentralized tools, once released as open-source software, can’t be rolled back, offering protection from regulatory interference. Armstrong also reinforced his belief that "code is speech" and software development should be safeguarded by the First Amendment. With Trump’s proposed ‘crypto czar’ role and the possibility of Diem’s revival, the future of crypto innovation could look brighter.