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Facebook’s upcoming cryptocurrency Libra has many regulators squirming in their seats. Since Facebook announced it in June, the stablecoin has been scrutinized by industry leaders and government officials alike. Now, a proposed bill could keep companies from following in Facebook's footsteps.
With Facebook set to appear before Congress this week to address a number of concerns from regulators about Libra, a new bill has been drafted. Titled “Keep Big Tech Out of Finance Act,” the title sums up the aim – preventing tech conglomerates from entering the financial sector.
WOW!!
— Pomp 🌪 (@APompliano) July 13, 2019
Congress has drafted a bill called “Keep Big Tech Out Of Finance” which would prevent large tech companies from becoming finance companies and launching digital assets.
Unlikely to succeed, but this is the most bullish thing for Bitcoin I’ve heard in weeks! 🔥
If passed, the bill stipulates that these tech giants would be prohibited from “establishing, maintaining, or operating digital assets that are intended to be widely used as a medium of exchange, unit of account, store of value or any other similar function.”
The draft further states that any tech firm with annual revenue of more than $25 billion may not venture into the financial sector. Furthermore, large technology companies that are predominantly engaged in offering an online marketplace or for connecting third parties will fall under the definition and barred from undergoing any such developments.
Any firm under that definition that violates the rules are subject to a fine of $1 million a day.