Libra, the controversial cryptocurrency to be launched by Facebook worries lawmakers. Crypto pioneers believe that the increased regulatory scrutiny on Libra could dent Bitcoin and other cryptocurrencies.
Although Facebook is yet to launch its cryptocurrency Libra, global lawmakers including the US and other countries have already begun scrutinizing Facebook’s plans and proposed policies around the cryptocurrency.
Crypto Lobbyists Fear the Possible Effects of Libra
As lawmakers are renewing their efforts to “define and rein in Libra” , others in the field are worried about lawmakers’ activities stunting the growth of Bitcoin and other cryptocurrencies. Kristin Smith, who is the director of the Blockchain Association said;
“What we don’t want to happen is members of Congress for the first time come in and author legislation that aims to go after Facebook and inadvertently takes out the other part of the industry,”
So far Facebook’s announcement of Libra has experienced an ever-growing mountain of regulatory challenges. US President Donald Trump, Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell have already expressed their skepticism about Libra among others.
Besides regulators, reports mentioned that the Libra is witnessing some of its partners leaving it as well.
As for Facebook’s Libra, the social media giant hired a specialist firm to lobby Washington directly. Following the registration document, Facebook’s Libra case will be represented by FS Vector LLC, a Washington, DC-based firm which is specialized in regulatory compliance and public policy. Interestingly, the lead lobbyist, John Collins is the former head of policy at Coinbase crypto exchange.
In a nutshell, how well Facebook’s stance of Libra will be represented by FS Vector is a matter of time. But, at the moment, crypto specialists are concerned on the effect that the regulatory approach to Libra might have on Bitcoin and other cryptocurrencies of the market.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com