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Facebook Appoints a Lobbying Firm to Help Alleviate Regulatory Pressure on Libra

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Facebook hires a lobbying firm

Facebook has hired a Washington-based lobbying firm to help it tackle the negative feedback triggered by the unveiling of Libra.  A press release on August 26 unveiled this information, noting that the social firm had started working with FS Vector.

FS Vector is a consultancy firm that focuses on regulatory compliance. Apart from this, the firm deals with public policy and business strategy for the FinTech, crypto, blockchain, and financial services spaces

According to the press release, Facebook filed lobbying registration documents with the US Congress. Per the documents, the firm sought FS Vector’s services to help it with “issues related to blockchain policy”.

John Collins, a partner at FS Vector will lead Facebook’s account. Prior to joining FS Vector, Collins served as the vice president of international policy at the American’s Banker Association’s Bankers Association for Finance and Trade.

Before this, he was a staffer on the US Senate Committee on Homeland Security and Governmental Affairs. On top of this, Collins also headed Congress’ first work into crypto six years ago.

Never-ending Skepticism

According to a report, US legislators visited Switzerland to get more information about the Libra project. This visit involved meetings with several Swiss authorities. The US lawmakers sought to clarify how the Swiss authorities would govern Libra. Also, they aimed to learn more about the status and size of the project. However, these meetings bore no fruits as the lawmakers returned home while still in doubt.

In the report, Maxine Waters said,

While I appreciate the time that the Swiss government officials took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency.

This visit came after a series of congressional hearings in mid-July regarding Libra. In one of these hearing, David Marcus, the head of Calibra said that Facebook picked Switzerland because it was a perfect fit for Libra’s goals.

However, he failed to convince the lawmakers that this was the main reason for setting up the project in Switzerland. According to the legislators, the social firm chose Switzerland as Libra’s headquarters to evade legal inspection.  

While the US does not have favorable crypto laws, other countries are working hard to embrace the crypto space. For instance, the Swiss banking watchdog, Finma recently approved two crypto banks. The agency granted banking permits to two firms namely, Seba and Sygnum. By licensing these firms, Finma allowed them to introduce their services in the market.

Reportedly, Finma’s approval will let Seba deploy a new trading platform by October this year. On the other hand, Sygnum plans to launch a liquidity and custody platform for coins like BTC, ETH, and Swiss Franc tokens.

Do you think Facebook’s decision to hire a lobbying firm will help expedite Libra’s Launch? Let us know in the comments below.

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