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Committee Democrats Call On Facebook To Halt Cryptocurrency Plans

SEATTLE MEDIUM — Last week, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee; Congresswoman Carolyn Maloney (D-NY), Chair of the Investor Protection, Entrepreneurship and Capital Markets Subcommittee; Congressman William Lacy Clay (D-MO), Chairman of the Housing, Community Development and Insurance Subcommittee; Congressman Al Green (D-TX), Chairman of the Oversight and Investigations Subcommittee; and Congressman Stephen F. Lynch (D-MA), Chairman of the Task Force on Financial Technology, wrote a letter to Mark Zuckerberg, Founder, Chairman and Chief Executive Officer of Facebook; Sheryl Sandberg, Chief Operating Officer of Facebook; and David Marcus, Chief Executive Officer of Calibra, requesting an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency and digital wallet.

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By The Seattle Medium

WASHINGTON – Last week, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee; Congresswoman Carolyn Maloney (D-NY), Chair of the Investor Protection, Entrepreneurship and Capital Markets Subcommittee; Congressman William Lacy Clay (D-MO), Chairman of the Housing, Community Development and Insurance Subcommittee; Congressman Al Green (D-TX), Chairman of the Oversight and Investigations Subcommittee; and Congressman Stephen F. Lynch (D-MA), Chairman of the Task Force on Financial Technology, wrote a letter to Mark Zuckerberg, Founder, Chairman and Chief Executive Officer of Facebook; Sheryl Sandberg, Chief Operating Officer of Facebook; and David Marcus, Chief Executive Officer of Calibra, requesting an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency and digital wallet.

“Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action,” the lawmakers wrote.“During this moratorium, we intend to hold public hearings on the risks and benefits of cryptocurrency-based activities and explore legislative solutions. Failure to cease implementation before we can do so, risks a new Swiss-based financial system that is too big to fail.”

This letter comes on the heels of Chairwoman Waters’ initial request for Facebook to agree to a moratorium in June.

The Chairwoman has also announced plans to convene a full Committee hearing entitled, “Examining Facebook’s Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System” on Wednesday, July 17.

See full text of the letter below.

July 2, 2019

Mark Zuckerberg
Founder, Chairman and Chief Executive Officer
Facebook
1 Hacker Way
Menlo Park, CA 94025

Sheryl Sandberg
Chief Operating Officer
Facebook
1 Hacker Way
Menlo Park, CA 94025

David Marcus
Chief Executive Officer
Calibra
Facebook
1 Hacker Way
Menlo Park, CA 94025

Dear Mr. Zuckerberg, Ms. Sandberg, and Mr. Marcus:

We write to request that Facebook and its partners immediately agree to a moratorium on any movement forward on Libra—its proposed cryptocurrency and Calibra—its proposed digital wallet. It appears that these products may lend themselves to an entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar. This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy.

On June 18, 2019, Facebook announced its plans to develop a new cryptocurrency, called Libra, and a digital wallet to store this cryptocurrency, known as Calibra. To assist it in this venture, Facebook has enlisted 27 other companies and organizations to form the Libra Association, which is based out of Switzerland. [1] These companies span the financial services and retail industry and include payment systems, like Mastercard, Paypal, and Visa, and technology giants, like Uber, Lyft, and Spotify. By the target launch date of early 2020, Facebook hopes to have recruited over 100 firms into the Libra Association.

While Facebook has published a “white paper” on these projects, the scant information provided about the intent, roles, potential use, and security of the Libra and Calibra exposes the massive scale of the risks and the lack of clear regulatory protections. If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger U.S. and global financial stability. These vulnerabilities could be exploited and obscured by bad actors, as other cryptocurrencies, exchanges, and wallets have been in the past. Indeed, regulators around the globe have already expressed similar concerns, illustrating the need for robust oversight.[2]

Investors and consumers transacting in Libra may be exposed to serious privacy and national security concerns, cyber security risks, and trading risks. Those using Facebook’s digital wallet – storing potentially trillions of dollars without depository insurance– also may become unique targets for hackers. For example, during the first three quarters of 2018, hackers stole nearly $1 billion from cryptocurrency exchanges.[3]The system could also provide an under-regulated platform for illicit activity and money laundering.

These risks are even more glaring in light of Facebook’s troubled past, where it did not always keep its users’ information safe. For example, Cambridge Analytica, a political consulting firm hired by the 2016 Trump campaign, had access to more than 50 million Facebook users’ private data which it used to influence voting behavior.[4] As a result, Facebook expects to pay fines up to $5 billion to the Federal Trade Commission (FTC), and remains under a consent order from FTC for deceiving consumers and failing to keep consumer data private. In the first quarter of 2019 alone, Facebook has also removed more than 2.2 billion fake accounts, including those displaying terrorist propaganda and hate speech.[5]It has also recently been sued by both civil rights groups[6] as well as the U.S. Department of Housing and Urban Development for violating fair housing laws on its advertising platform and through its ad delivery algorithms.[7]

Because Facebook is already in the hands of a over quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action. During this moratorium, we intend to hold public hearings on the risks and benefits of cryptocurrency-based activities and explore legislative solutions. Failure to cease implementation before we can do so, risks a new Swiss-based financial system that is too big to fail.

Sincerely,

Rep. Maxine Waters, Chairwoman

Rep. Carolyn Maloney, Chair – Subcommittee on Investor Protection, Entrepreneurship and Capital Markets

Rep. Wm. Lacy Clay, Chair – Subcommittee on Housing, Community Development and Insurance

Rep. Al Green, Chair – Subcommittee on Oversight and Investigations

Rep. Stephen F. Lynch, Chair – Task Force on Financial Technology

[1] The 27 other members of the Libra Association are Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa, Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc., Iliad, Vodafone Group, Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited, Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures, Creative Destruction Lab, Kiva, Mercy Corps, and Women’s World Banking

[2] See, e.g. The Honorable Randal K. Quarles, Vice Chairman of Supervision for the Board of Governors of the Federal Reserve System and Chair of the Financial Stability Board, Financial Stability Board Chair’s letter to G-20 Leaders meeting in Osaka, June 25, 2019, https://www.fsb.org/2019/06/fsb-chairs-letter-to-g20-leaders-meeting-in-osaka/. (“A wider use of new types of crypto-assets for retail payment purposes would warrant close scrutiny by authorities to ensure that that they are subject to high standards of regulation.”); Bank of International Settlements Annual Economic Report, Big tech in finance: opportunities and risks, June 23, 2019, https://www.bis.org/publ/arpdf/ar2019e3.htm. (“Big techs have the potential to become dominant through the advantages afforded by the data-network activities loop, raising competition and data privacy issues. Public policy needs to build on a more comprehensive approach that draws on financial regulation, competition policy and data privacy regulation… As the operations of big techs straddle regulatory perimeters and geographical borders, coordination among authorities – national and international – is crucial.”)

[3] CipherTrace Cryptocurrency Intelligence, Cryptocurrency Anti-Money Laundering Report, 2018 Q3 https://ciphertrace.com/wp-content/uploads/2018/10/crypto_aml_report_2018q3.pdf.

[4] Kevin Granville, Facebook and Cambridge Analytica: What You Need to Know as Fallout Widens, (March 19, 2018).

[5] Facebook, Community Standards Enforcement Report (2019 Q1).

[6] Complaint, Nat’l Fair Housing Alliance et al. v. Facebook, Inc., No. 18-cv-02689 (S.D.N.Y Mar. 27, 2018), https://nationalfairhousing.org/wp-content/uploads/2018/03/NFHA-v.-Facebook.-Complaint-w-Exhibits-March-27-Final-pdf.pdf.

[7] Charge of Discrimination, U.S. Dep’t of Housing & Urban Development v. Facebook, Inc., FHEO No. 01-18-0323-8 (March 28, 2019), https://www.hud.gov/sites/dfiles/Main/documents/HUD_v_Facebook.pdf.

This article originally appeared in the Seattle Medium

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Oakland Post: Week of August 12 – 18, 2026

The printed Weekly Edition of the Oakland Post: Week of August 12 – 18, 2026

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Commentary

COMMENTARY: Why Local School Tax Measure G1 Will Not Be on the November Ballot

POST NEWS GROUP — Measure G1 is the local tax measure that supports middle school teacher retention and the expansion of arts, music, and world language programs at both OUSD middle schools and charter middle schools. The current measure expires in 2029.

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There has been considerable speculation recently about why Measure G1 will not appear on the November ballot and what that means for the Oakland Unified School District’s current budget.

I want to provide some clarity about what happened and, importantly, what did not happen.

Measure G1 is the local tax measure that supports middle school teacher retention and the expansion of arts, music, and world language programs at both OUSD middle schools and charter middle schools. The current measure expires in 2029.

Because these funds are important to our schools and to the continuity of these programs, the district initially intended to place a renewal initiative on the November ballot to provide greater early certainty about funding beyond the expiration of the current measure.

As part of that process, the Board scheduled a special meeting for the required public hearing on the ballot initiative. There has been some suggestion that this meeting was noticed only one day in advance. That is not accurate.

Public hearings of this nature are subject to specific notice requirements, and the meeting must be noticed at least two weeks before the hearing. In practice, the notice may appear even earlier depending on publication schedules. The notice for the Measure G1 public hearing was published in the Tribune on 7/24/2026 and 7/31/2026.

So, why wasn’t the Measure G1 paperwork ultimately filed?

After the Board approved placing the measure on the ballot, the next step required the Alameda County Superintendent of Schools to sign the necessary paperwork before it could be submitted to the Oakland City Clerk.

During that process, Alameda County Superintendent Alysse Castro raised concerns about potential litigation stemming from another court case unrelated to OUSD and about whether proceeding with the measure could expose the district or County to legal challenges. Superintendent Castro’s action is unprecedented and concerning. 

It is important to distinguish between the Board’s decision to pursue Measure G1 and the subsequent procedural and legal issues that arose. The Board did approve moving forward with the measure. The measure did not fail because the Board chose not to support it, nor was the public hearing improperly noticed.

The decision not to proceed with the November ballot was made in light of the County’s concerns about potential litigation and the County’s required approval process.

We also need to be clear about what this does, and does not, mean for OUSD’s current budget. The existing Measure G1 funds remain available through the expiration of the current measure in 2029. The immediate issue is the longer-term continuity of funding beyond that date, not the elimination of these resources from the current year’s budget.

Our responsibility as a Board is to protect the educational programs and services our students depend on while ensuring that our decisions comply with the law and protect the district from unnecessary legal and financial risk.

We will continue working to understand the County’s concerns, explore our options, and advocate for the resources our students deserve. Our middle school students, teachers, and school communities deserve stability, and continued investment in arts, music, world languages, and teacher retention—and that work remains a priority for Oakland Unified.

Jennifer Brouhard is a retired OUSD educator and is the current OUSD School Board President representing District 2.

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Community

Less Affluent School Districts, Including Sacramento City, Face Threat of State Takeover

POST NEWS GROUP — Speaking on the July 15 show, “Education Today,” hosted by education professor Kitty Kelly Epstein, Taylor Kayatta, a certificated public accountant (CPA) who serves as the first vice president of SCUSD, spoke about the ongoing struggle of their board and community to keep SCUSD from being taken over.

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First Vice President of Sacramento City Unified School District Taylor Kayatta and family. Courtesy photo.

A recent show on radio station KPFA 94.1 featured a discussion about the racialized threats to less affluent urban public school districts as state authorities pressure school leaders to take out bailout loans to resolve budget shortfalls. These loans come with draconian terms that eliminate the authority of voter-selected school boards and impose extreme austerity measures, including the closure of many schools in poorer neighborhoods.

A dozen mostly minority school districts have been forced under state control in the past 20 years, including the Oakland Unified School District. At present, Sacramento City Unified School District (SCUSD), an ethnically and racially diverse district of about 42,000 students, is the target, but the district’s school board and the community are fighting back.

Speaking on the July 15 show, “Education Today,” hosted by education professor Kitty Kelly Epstein, Taylor Kayatta, a certificated public accountant (CPA) who serves as the first vice president of SCUSD, spoke about the ongoing struggle of their board and community to keep SCUSD from being taken over.

“There’s been pressure on my school district for over a decade now; there’s a feeling (from the state) that we’re intrinsically broken, that we cannot manage our finances,” said Kayatta, who has two elementary students in SCUSD.

“It reached a fever pitch a couple of years ago before COVID; I really felt it as a parent in the community that they were coming for us,” he said.

“Within the past year, they’re back at it again,” he said. “The pressure right now to accept a state loan is something I am not sure I could even describe.”

He said that the outside authorities would not even allow the board to hire its own financial adviser to help find solutions; the state takeover is the only option they want.

“We have a county superintendent in Sacramento County (who) has been on the job for decades. It’s been his mission, in my opinion, that something is wrong with Sac City Unified, that we are the problem child; we need outside control, (and) we shouldn’t be running ourselves,” said Kayatta.

In a district where enrollment is slightly declining, and many students have complex educational needs, SCUSD does face financial difficulties, he continued.

“There’s going to be challenges with the budget in the long term, but I think we need to address that in a way that is community-driven, with the community understanding what it means rather than accepting some blanket (imposed) ‘best practice’ that often involves making dramatic, harsh cuts, things like closing schools without plans.

“If you need to make cuts, make them in a way that makes sense rather than just trying to save a dollar this school year,” he said.

For example, closing a school may save a little money in the short run but almost always means loss of student enrollment as families move out of the district, which ends up costing a district more than it saves and can lead to a cycle of decline and demoralization.

Closely allied with the County Superintendent is the Fiscal Crisis and Management Assistance Team (FCMAT), “which has been at the heels of this district as long as I’ve lived in the district,” he said.

FCMAT is a state-funded nonprofit based in Bakersfield that has been granted sweeping authority under state law to pressure school districts to adopt fiscal austerity.

In theory, something like FCMAT would be a good thing, an agency that would help districts that face some financial difficulties, he said. “But my experience and the experience of people in Sacramento is that they’re an outside agency that has its own motivations.”

“They are not about helping you save your budget and helping you get through temporary (issues). They’re more about taking control over a district that they think shouldn’t be running itself.”

A school board is democratically elected and exists as “the people’s voice,” Kayatta said. Local schools need leadership that understands the problems and issues the community faces, “not an outside appointed group of people from Bakerfield who don’t really understand what Sacramento needs,” he said.

Show host Kitty Kelly Epstein, who actively opposed the state takeover of Oakland schools two decades ago, discussed its impact, which formally lasted until OUSD’s bailout loan was repaid in June 2025.

“When a district is taken over by the state, that means the school board loses all their power, which means that the electors, that’s the residents, lose all their power because they don’t get to elect anybody. There’s somebody put in charge, and they make all the decisions.”

“In the case of Oakland, Oakland’s debt could have been solved internally. That was not allowed by the state senator at the time, Don Perata,” she said.

“The actual amount that the district needed was about $37 million, and they were not allowed to use their own money to cover the debt. The loan that was imposed without the will of the people of Oakland was a $100 million. They fired the superintendent, brought in a state receiver, and spent the $100 million on whatever they wanted because there was no participation by people in Oakland,” she said.

“I know it sounds shocking. It was shocking, and Oakland was not the only district. There were others: Inglewood, Vallejo, Compton, said Kelly Epstein.

“The people who often have the least amount of input anyway, because of inequalities and racism in our system, get the little bit of participation that they have in schools, which is to elect a school board, taken away from them.”

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