Visa, PayPal May Bear a ‘Heavy Burden’ With Facebook Crypto Plan

  • Early Libra backers face more regulatory risk: Morgan Stanley
  • House, Senate hearings mid-July will be ‘significant’: Cowen

Pedestrians walk past PayPal Holdings Inc. signage outside the company's headquarters in San Jose, California.

Photographer: David Paul Morris/Bloomberg
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Visa Inc., Mastercard Inc. and PayPal Holdings Inc. may have boosted the single, greatest risk they face -- that of tougher regulation -- by becoming early backers for Facebook Inc.’s new digital money, called Libra.

That’s according to Morgan Stanley analyst James Faucette, who wrote that the three companies face a potentially “heavy burden” as already-fierce regulatory scrutiny is likely to keep growing.