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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.

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

Photographer: David Paul Morris/Bloomberg

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.