The regulatory officials within the United States are discussing a bill that seeks to prevent the leading tech institutions in the country from issuing digital currencies.
In line with a recent report by ‘Reuters‘, and a copy of the draft bill ‘circulating online‘, the lawmakers within the U.S. House of Representatives are looking to maximize the scrutiny over major tech firms that have an interest in ‘cryptocurrencies‘.
Under the section of “Prohibition associated with cryptocurrencies,” the draft bill, referred as “Keep Big Tech Out Of Finance Act,” adds:
“A major platform utility might not establish, maintain, or operate a digital asset that’s meant to be widely employed as a medium of exchange, unit of account, store of value, or any other similar function, as outlined by the Board of Governors of the Federal Reserve System.”
The bill specifically outlines that a digital asset as “an asset that’s issued and transferred employing DLT [Distributed Ledger Technology] or ‘blockchain‘ technology, including, supposed ‘virtual currencies,’ ‘coins,’ and ‘tokens.’”
It additionally clarifies any massive tech firm with over $25 Bln in global annual revenue might fall into this category and any associated violation of the proposed regulations are subjected to a fine of “$1 Mln per day in cases of such violations.”
While the bill continues to be in a discussion draft form and not yet formally filed, this news comes simply weeks after the leading tech firm ‘Facebook’ announced about its upcoming cryptocurrency project named ‘Libra’. The firm engaged $55 Bln in its global revenue for the last year.
International regulators have since then raised their concerns on how Facebook’s plan can stay compliant with central banking regulations across the globe.
Just last week, the United States president ‘Donald Trump’ made his 1st comments on crypto-currencies via a series of tweets, thereby criticizing Facebook’s Libra project and referring it as a “little standing or reliability.”