David Marcus, former head of Facebook’s Diem project, revealed that the initiative’s failure was largely due to political pressure, not regulatory issues.
In a post, Marcus explained that despite years of adjustments to appease lawmakers, the project’s downfall came when U.S. Treasury Secretary Janet Yellen actively lobbied against it, fearing political backlash.
With some support from the Federal Reserve’s leadership, the project ultimately faced resistance from powerful figures like Yellen, leading to its demise.
The final blow came when the Federal Reserve pressured participating banks, signaling discomfort with the project’s continuation. Additionally, regulators raised concerns over Facebook’s potential control over the financial system, contributing to the project’s end.
Marcus pointed out that, despite significant work to gain approval, the project was doomed by political infighting and resistance from key government figures.
After Diem’s collapse, many former team members moved to Aptos and Sui, blockchain projects built on Move, the programming language originally developed for Diem.
Marcus, now focused on his new venture, Lightspark, aims to enhance the Bitcoin Lightning Network, signaling his continued commitment to the cryptocurrency space.
The first week of July brings several important developments in the United States that could influence both traditional markets and the cryptocurrency sector.
Ric Edelman, one of the most influential voices in personal finance, has radically revised his stance on crypto allocation. After years of cautious optimism, he now believes that digital assets deserve a far larger share in investment portfolios than ever before.
In the case involving Terraform Labs and its co-founder Do Hyeong Kwon, the defense has asked the Federal Court for the Southern District of New York to extend the deadline for pretrial filings by two weeks, pushing it beyond the original date of July 1, 2025.
Coinbase has emerged as the best-performing stock in the S&P 500 for June, climbing 43% amid a surge of bullish momentum driven by regulatory clarity, product innovation, and deeper institutional interest in crypto.