Facebook Hires Lobbying Firm to Ease Regulatory Pressure on Libra

Published at: Aug. 27, 2019

Facebook has hired a Washington-based lobbying firm to help it grapple with the negative response to its planned Libra cryptocurrency.

According to an O’Dwyer PR report published on Aug. 26, the social media giant is working with FS Vector — a consultancy firm that specializes in regulatory compliance, public policy, and business strategy for the fintech, cryptocurrency, blockchain and financial services sectors.

The FS Vector Facebook account

Facebook’s lobbying registration documents, filed with the United States Congress, reportedly reveal that the firm is retaining FS Vector for support on “issues related to blockchain policy.”

Leading the Facebook account is FS Vector partner John Collins, former vice president of international policy at the American Bankers Association’s international subsidiary, the Bankers Association for Finance and Trade. 

Previously, Collins had worked at the U.S. Senate Committee on Homeland Security and Governmental Affairs, and also spearheaded Congress’ first research into digital currencies in 2013. 

Persistent doubts

As reported, the latest chapter in U.S. regulators’ ongoing scrutiny of Facebook’s planned global cryptocurrency involved a visit to meet Switzerland’s financial authorities. 

Facebook has notably chosen to register the Libra Association, the independent governance consortium for its planned Libra token, in Switzerland. 

At a hearing before U.S. representatives in mid-July, David Marcus — chief of Facebook’s Calibra wallet service — had claimed that the choice had “nothing to do with evading regulations or oversight,” arguing instead that the jurisdiction is an international hub conducive to doing business. 

Following their meeting with Swiss government officials and local regulatory agencies last week, members of the U.S. House of Representatives Financial Services Committee said that their concerns remained about “allowing a large tech company to create a privately controlled, alternative global currency.”

Tags
Regulation
United States
Altcoin
Cryptocurrencies
Facebook
Libra
Related Posts
Report: Libra Stablecoin Tied to Major Fiat Currencies, Excluding Yuan
Social media giant Facebook, which is currently trying to get regulatory approval for its Libra stablecoin project, reportedly shared details regarding the project’s proposed backing reserves. According to a report by Bloomberg on Sept. 9, Facebook told United States senators about the backing reserves for the stablecoin — a type of cryptocurrency valued by a reserve currency, commodity or algorithm. Libra is backed by major national currencies Libra will reportedly be backed by several national currencies. These include the U.S. dollar, euro, Japanese yen, British pound and Singapore dollar. However, the Chinese yuan may be excluded from the group of …
Regulation / Sept. 9, 2019
EToro: Facebook Should Drop Libra and Support Third-Party Stablecoins
Blockchain researchers at online brokerage eToro have argued that Facebook should look to support third-party stablecoins, not Libra. According to a Nov. 28 report from Finextra, eToro’s blockchain research unit eToroX Labs believes that while Facebook’s crypto project offers a “trailblazing opportunity” to disrupt financial services worldwide, the social media giant needs to change its strategy to assure success. Facebook should focus on wallet infrastructure Distrust and forceful opposition have plagued Facebook’s project since its inception — prompting American politicians to recast Libra derisively as “ZuckBucks.” Yet eToroX Labs’ researchers argue that there is still something to fight for in …
Regulation / Nov. 28, 2019
Facebook COO Sandberg in Talks to Testify On Libra Before The House
Facebook’s chief operating officer Sheryl Sandberg is in talks with the House Financial Services Committee to testify on Libra, Facebook’s stablecoin. Discussions on market power and Libra According to a Bloomberg article from Sept. 26, Facebook is currently trying to get its chief operating officer Sandberg in front of the House Financial Services Committee, perhaps as soon as next month. Sandberg is expected to testify on the social media giant’s global market power and its plans to launch its stablecoin Libra in 2020, a source familiar with the talks told Bloomberg. Sanberg’s previously testified in front of the Senate Intelligence …
United States / Sept. 27, 2019
US Lawmakers Want to Brand Libra a Security, Association Disagrees
A couple of United States lawmakers are looking to classify stablecoins as securities. With Libra considering adopting fiat-pegged stablecoins rather than a single token supported by a basket of national currencies, the proposed crypto project might be facing yet another regulatory hurdle. Meanwhile, lawmakers sponsoring the bill say stablecoins should be classified as securities to protect U.S. consumers. If passed, stablecoin projects like Libra will potentially fall under the purview of stringent U.S. securities regulations. Critics of the move remark that such measures only serve to further dampen the country’s position in the emerging digital landscape. Some commentators have long …
United States / Dec. 1, 2019
Libra US Congressional Hearing — Recap Before Zuckerberg Faces the House
Today, Oct. 23, Facebook CEO Mark Zuckerberg will testify before the United States House of Representatives Financial Services Committee regarding Libra — the company’s stablecoin project that has been facing major regulatory backlash since the day it was announced. While Libra was previously represented in front of the U.S. lawmakers by the head of the coin’s native Calibra crypto wallet, David Marcus, this will be the first time Zuckerberg himself will represent the project in Congress. So, could the Facebook CEO have any tricks up his sleeve, and how beneficial will such a hearing be for Libra? Brief recap of …
Regulation / Oct. 23, 2019