since Facebook officially announced the launch of its digital coin
Libra, back in June, the US lawmakers have increased scrutiny on it.
order to deal with a regulatory backlash, Facebook is receiving due
to Libra announcement, and the social media giant has hired a
lobbying organization FS Vector –US-based lobbying company. FS
Vector is regulatory compliance, business strategy, public policy and
advisory firm that helps fintech, financial organizations, regtech,
and other innovative firms to deal with challenges and develop the
momentum required to progress. FS Vector was founded in 2018.
per O’Dwyer PR report revealed on August 26th,
Facebook and FS Vector are working jointly.
to lobbying registration reports filed with the Congress on August
23, mentions that Facebook the tech giant company has retained FS
vector as its client, commencing from August 5th
to function on ‘issues related to blockchain policy.’
to the filing, the associate of FS Vector, John Collins will act as a
lobbyist for Facebook firm. On the LinkedIn page of Collins, it is
mentioned that he has served Coinbase – crypto exchange firm as the
head of policy, starting from September 2014 – January 2016. Prior to
this, he worked as a senior employee for the US Senate Committee on
Homeland Security and governmental affairs. He has also worked on the
first congressional investigation and hearing on cryptocurrency and
blockchain technology, back in 2013.
in August, Menlo Park-based firm recruited Susan Zook –ex-aide to
US Senate Banking Committee Chairman Mike Crapo, as a lobby for Libra
project. Facebook also recruited ex-senior bank lobbyist of Standard
Chartered, Edward Bowels in June 2019.
Vector is not only the lobbying firm to be hired by Facebook for its
crypto Libra project, but other lobbying companies are also hired
such as Sternhell Group, Davis Polk- the law company and the Cypress
official announcement of Facebook’s Libra project has disturbed
regulators across the world. The main area of concern is with
regards to customer privacy and protection, which the firm has found
breaching privacy of users, in recent times.
after the Facebook’s announcement, in July the US regulators
proposed a bill named ‘Keep Big Tech Out of Finance Act,’ the
objective of this bill is to ban any technological firm of specific
size from developing, operating or managing a cryptocurrency.
new move of Facebook comes at a time when the company is experiencing
high pressure from US regulatory authorities over Facebook’s plan
to launch its global digital coin Libra by 2020 as a payment
on Sunday, Maxine Waters- the US representative and who also runs the
House Financial Services Committee, mentioned that talks with
lawmakers in Switzerland failed to clear her concerns on Facebook’s
it was reported by Politico that the social media firm had invested
more than $7.5 million in 2019 on lobbying attempts for Libra project
with several third party lobbying companies.
database collected by ProPublica also reveals that Facebook has hired
Off Hill Strategies and Bryan Cave Leighton Paisner in June and July
to concentrate on blockchain policy issues.
week, after their meeting with Swiss government authorities and local
lawmaker agencies, the US House of Representatives Financial Services
Committee members mentioned that their doubts were unclear on
‘allowing a large tech company to create a privately controlled,
alternative global currency.’
to high US regulatory pressure, some of the members of Libra
Association- a non-profit organization that overseas Libra, are
thinking of stepping back.