As the cryptocurrency universe enters 2020, U.S. lawmakers are drafting bills to provide clarity around stablecoins and offer regulations for tech companies like Facebook that might want to create their own cryptocurrencies.
The draft legislation “Keep Big Tech Out Of Finance Act” was proposed on July 15, 2019 by the Democratic majority of the House Financial Services Committee. While this legislation specifically targets Libra, a new digital currency spearheaded by Facebook, the proposal aims to prevent big technology companies from operating like financial institutions.
According to a copy of the draft legislation, a large technology firm is described as a company offering an online platform service with at least $25 billion in annual revenue.
With that in mind, the bill specifically proposes that, “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.” Read More...