By On August 27th, Facebook hired FS Vector Consultancy Firm to fight back the ongoing negative response by various US financial regulatory authorities about Libra.
Facebook will retain FS Vector services for legal representation against the US financial regulatory investigations into Libra and blockchain policy. FS vector lobbying firm, based in Washington, specializes in blockchain and cryptocurrency regulatory compliance, public policy, and business strategies in the financial sector. FS vector partner, John Collins, will spearhead Facebook’s defence on Libra.
Concerns Raised by US Financial Services Regulatory Authorities about Libra
Libra cryptocurrency is designed as a global cryptocurrency and financial structure, aimed at empowering billions of people around the world. It was registered in Switzerland through The Libra Association, as a not-for-profit organization with headquarters in Geneva. The Libra Association location is one of the reasons why financial regulatory authorities have raised concerns. Many authorities claim that Facebook is trying to evade US regulations by registering the company with foreign authorities.
However, David Marcus, the CEO of Calibra (Libra’s host platform) Wallet Service, defended Facebook’s choice of registering Libra in Switzerland. He testified:
“The Libra Association expects that it will be licensed, regulated and subject to supervisory oversight. Because the Association is headquartered in Geneva, it will be supervised by the Swiss Financial Markets Supervisory Authority (FINMA). We have had preliminary discussions with FINMA and expect to engage with them on an appropriate regulatory framework for Libra Association. The Association also intends to register with the US Treasury Department’s Financial Crimes Enforcement Network, as a money services business.”
In July, before the Senate Banking Committee, regulators accused Facebook of threatening consumer privacy and expressed their doubts. Senator Sherrod Brown, a top Democrat on the panel, asked, “Do you really think people should trust Facebook with their hard-earned money?”
Both Republican and Democrat leaders and many other financial authority institutions across Washington have expressed their scepticism about Facebook plan trying to create a digital currency. Even after Marcus promised authorities that Facebook is taking their time to get the Libra integration details right, there are still questions from financial regulatory authorities on how digital currency should be policed. Libra representation team has been appearing on multiple hearings to defend their project and now with legal representation from FS Vector. Facebook remains adamant about defending Libra’s vision.
About FS Vector
FS Vector recognizes that public policy services need to change to accommodate the financial services and technology developments in today’s market. FS Vector assists their clients to manage risks by developing strong relationships with all stakeholders, to foster education and advocacy efforts.
Recently, at least two of Libra’s backers are considering backing out of the project Libra. The project had attracted about 28 entities as its backers. The two bodies cited growing pressure from regulators as their reason for calling it quits.
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