Raj Date, a venture capitalist who served as the first deputy director of the US Consumer Financial Protection Bureau (CFPB), is starting a consulting service aimed at cryptocurrency and digital banking companies that operate in the US. FS Vector, as the new venture is called, will focus on “regulatory, compliance and policy issues for firms at all stages of development.”
Besides crypto companies, FS Vector will also serve enterprises operating in the fintech industry, examples being online lenders, digital payment providers, robo advisers, and traditional banks.
Date’s initiative is driven by the uncertainty and ambiguousness in current legislation related to cryptocurrencies and the fintech industry in general. US agencies such as the Securities and Exchange Commission (SEC) and the Treasury Department are thinking about ways of integrating tech companies into the finance-oriented legal framework. The regulators have decided that cryptocurrencies require greater oversight given the high volatility and concerns over money laundering or terrorist financing.
On the other hand, companies trying to embrace digital trends may find it challenging due to government regulations that have not been updated to reflect the impact of technological innovations.
John Beccia III, a co-founder of FS Vector and its future CEO, said:
“These technologies have the ability to be transformative for consumers, but an uncertain legal framework poses challenges. Not only do we want to help individual companies overcome these barriers, but we want to create a forum for thought leadership and foster positive collaboration among the industry and government in order to educate key stakeholders, shape policy and ensure that innovation isn’t stifled.”
Beccia was chief compliance office at Circle Internet Financial, a cryptocurrency trading platform backed by Goldman Sachs (NYSE:GS). On a side note, Circle raised $110 million in May from investors including Bitmain, Pantera, and IDG Capital.
John Collins, who led Coinbase’s policy unit and was a Senate aide, will also have a role in the new business.
FS Vector will be affiliated with Fenway Summer Ventures, which Date founded in 2016 to invest in fintech companies.
This article appeared first on Cryptovest
