• Mon, 26 Aug 2019, 10:05 AM
  • All times are UTC
  • Edition:
Copy link
Increase text size
Decrease text size
Link copied

U.S. lawmakers seek to prevent big tech companies from offering cryptocurrencies

Mon, 15 Jul 2019, 07:17 am UTC

Facebook’s cryptocurrency project ‘Libra’ has created quite a stir in the regulatory bodies across the globe.

While the tech giant is gearing up for its upcoming hearing, a draft law has reportedly been circulated by U.S. lawmakers to keep big tech companies from functioning as financial institutions, Reuters reported.

According to an online copy of the draft bill, entitled “Keep Big Tech Out Of Finance Act,” the primary objective is to prohibit large platform utilities from being a financial institution or being affiliated with a person that is a financial institution, and for other purposes.

“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System,” it states.

As such, the bill describes ‘‘digital asset’’ as an asset that is issued and transferred using distributed ledger or blockchain technology, including virtual currencies, coins, and tokens. It further describes large platform utility as a technology firm with at least $25 billion in annual revenue and engaged in offering “an online marketplace, an exchange, or a platform for connecting third parties” to the public.

Importantly, large tech companies or financial institutions that violate the proposed rules would be subject to “a fine of not more than $1,000,000 per each day of such violation.”

The bill is currently in the form of “discussion draft” and has not been submitted formally, CoinDesk noted.

Facebook, which saw over $55 billion in total revenue for 2018, is currently bracing for its upcoming hearings this week at both the US House Financial Services Committee and the Senate Banking Committee to discuss issues and concerns about the Libra cryptocurrency project.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $10,363.50 (+2.18%)
  • Ethereum (ETH) $190.32 (-0.23%)
  • XRP (XRP) $0.270900 (-0.67%)
  • Bitcoin Cash (BCH) $311.41 (+0.85%)
  • Litecoin (LTC) $73.93 (+0.21%)
  • Bitcoin (BTC) $10,363.50 (+2.18%)
Aug 26, 2019 (Monday)
FDA mulls using blockchain to modernize medical feedback and recall process
Manchester City announces blockchain partnership with Superbloke
US lawmaker’s concerns on Facebook's crypto remain unresolved even after meeting with Swiss regulators
Brave Browser expands token tipping service to Vimeo, Reddit users
Craig Wright again tries to prove authorship of Bitcoin white paper
Crypto startup Circle eyes $100M fundraise for its crowdfunding arm SeedInvest
BitPay, Blockchain.com team up to offer a new way of bitcoin spending
Binance offers lifetime VIP membership to hack victims, blames KYC vendor for image leaks
Aug 23, 2019 (Friday)
Stablecoin project Terra receives funding from HashKey Capital
Three of the founding members of Libra Association consider backing out: Report
Overstock's Patrick Byrne steps down as CEO
Pundi X brings XPOS crypto payments to Venezuela's Traki retail stores
Blockchain startup Blockstack scores strategic investment from Japan's Recruit Holdings
BitGo announces support for multi-signature EOS wallet and custody services
US Treasury blacklists crypto addresses of suspected Chinese fentanyl traffickers
Chainalysis launches ‘Chainalysis KYT Alerts’ to detect suspicious cryptocurrency activity in real-time
Cryptocurrencies used to buy fentanyl, other illicit drugs: White House
Blockchain energy startup Power Ledger extends energy trading trial in Fremantle
Blockchain accelerator initiatives launched at the University of California campuses
Aug 22, 2019 (Thursday)
Crypto exchange Coincheck mulls launching IEO Platform
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.