The principal character behind Facebook's latest digital currency project wrapped up a two-day discussion with Congress on Monday, culminating with House Financial Services Chair Maxine Waters who said that they don't know what they are dealing with.
Even with some of the questions answered, there is still the big question of who is actually going to regulate Facebook's Libra coin if it's based in Switzerland.
Confused
So, from how and when it became a hot potato issue - and how it has baffled many in the business and tech sector for being an "alphabet soup question", as how to finance analyst Donovan Russo would put it, market analyst Brian Cheung analyzed the situation by saying "It is (a hot potato issue) and the challenge is there is no cryptocurrency regulator in the United States.
Facebook's Libra is interesting because Maxine Waters and a number of lawmakers on Capitol Hill spent the last few days trying to figure out who should step up to the plate to be the first to regulate this completely unprecedented technology.
Apparently, for Waters and her colleagues, they are simply at a loss at what they are really dealing with at the moment. "That's the problem because we don't know what it is. And not knowing what it is, you certainly can't begin to talk about who should regulate," she told Jessica Smith of Yahoo Finance, on Monday.
Not well-defined
Waters emphasized that the new crypto "could be" regulated and that if it goes forward, it would be a whole new regulatory setup. "I don't know at this point. But because it is not well-defined in ways that we understand, I could not tell you who should or who could be regulating something like this."
The issue of Libra is a "hot potato" is simply culled from the perspective that none of these agencies really understand if A) They don't have the authority to do this, or B) If they do, how would they approach in regulating this.
But specifically, one of the biggest questions is whether they (Facebook) really want to move forward. David Marcus, who heads the Libra effort, was asked this question on Tuesday in the Senate and, in his opening remarks, said:
"Let me be clear and unambiguous. Facebook will not offer the Libra digital currency until we have fully addressed regulators' concern and receive appropriate approvals."
It's kind of a Catch-22 situation: How will the social media giant get approval if no one knows who is set to be approving this?
Defying the odds
Meanwhile, Facebook (FB) was among the top gaining stocks on Fortune Global's latest ranking of the 500 biggest earning companies, unfazed by the impact of controversies that have hounded the company.
Facebook rallied from 184 to 90, reflecting an almost 40% increase in both profit and revenue.
