In a series of tweets, Trump said Libra would have to seek a banking charter if it wanted to operate like a bank. The US president stated in a tweet time stamped at 5pm ET that "unregulated crypto assets possess the ability to facilitate unlawful behaviour".
Several high-level officials have spoken out against Libra over the past week, including Federal Reserve Chairman Jerome Powell. Powell's comments (which didn't even mention Bitcoin) may have caused BTC and other crypto prices to drop over 12 percent.
The news came as the US Federal Reserve issued an unexpected change in tone regarding Facebook Libra.
"Facebook Libra's "virtual currency" will have little standing or dependability", he said.
He also claimed not to be a fan and lauded the U.S. dollar as the most dependable and dominant in the world, which suggests the road ahead is not going to be easy for these assets in the US.
He also claimed that Facebook's Libra is not dependable and it should seek a banking charter if it plans to act as a bank with its cryptocurrency.
The tussle between the USA administration and Bitcoin just intensified as the world's most powerful lawmaker, the President of the United States, Donald Trump has spoken on cryptocurrencies for the first time, and the news is not pleasant for the industry.
Google searches for the phrase "bitcoin" has shot up after Trump's tweets.
"This is a reaction that anyone who believes in Bitcoin would expect - the highest government official on the planet in POTUS openly condemning cryptocurrencies as a vehicle for crime in order to protect the United States dollars".
They frequently point out that since blockchain transaction records are immutable and public, that such cryptocurrencies are indeed more transparent than fiat currencies. The cryptocurrency has more than tripled this year, recovering some of its losses from a 2018 crash, as the Libra project helped revive investor interest in digital assets.