Facebook Expands Lobbyist Team to Defend Libra

Published on 2019-08-26 by Cryptovest Staff

Facebook has hired another lobbyist to present the case for Libra to Washington, in a bid to save the project from regulatory hurdles.

Facebook retained the services of lobbying consultants FS Vector, to smooth out issues related to blockchain and cryptocurrency, reported O’Dwyers, a specialized researcher of PR background information. Based on filings with the US Congress, Facebook may have sought yet another lobbyist for its Libra project.

Libra, the proposed international digital asset, was met with regulatory skepticism in the USA and Europe as well, and awaits the verdicts of multiple regulators, including Swiss oversight bodies regarding the Libra Association.

FS Vector specializes as “regulatory compliance, public policy and business strategy advisory firm”, and was established in 2018 with a special focus on fintech and blockchain. Partner John Collins is at the head of Facebook’s account. Formerly, Collins was vice president of international policy at the Bankers Association for Finance and Trade. Collins was also on the U.S. Senate Committee on Homeland Security and Governmental Affairs, and served with the first Congress explorations of blockchain back in 2013.

Due to regulatory restrictions, Facebook warned it may not be able to launch Libra in 2020, or may give up on the project altogether. Libra arrives at a time when fintech payment systems are booming, yet are facing enough regulatory restrictions regionally. The chief concern of Libra is that it would exert too big an influence and outcompete other payment systems.

Facebook has retained the services of the Sternhell Group and the Cypress Group, the Davis Polk law firm, as well as BakerHostetler and the OB-C Group, shows a recent Politico report. Swaying and educating policymakers may bring Libra a bit closer.

The introduction of Facebook’s Libra, however, was not entirely beneficial for the crypto market. The news coincided with a Bitcoin (BTC) rally, but later, the increased regulatory skepticism sparked a reversal of price action. Along with Libra, other assets faced potential harsher restrictions, dashing any hopes of a truly free payment system.

Recent reports also reveal that BTC and other digital coins are fueling terrorism, illegal fundraising and bypassing controls on the movement of funds to finance illegal activities.