Congress Members Draft ‘Keep Big Tech Out Of Finance' Bill to Stop Companies Like Facebook's Libra

It seems that there is a draft bill that aims at prohibiting tech companies from entering the financial market. This comes just a few weeks after the official announcement of Facebook’s digital asset called Libra.

  • Congress members may want to keep tech companies out of the financial market
  • Facebook is going to be clarifying some issues related to Libra in an upcoming hearing

A new draft bill titled “Keep Big Tech out of Finance” has been shared on social media apparently being drafted by members of the U.S. House of Representatives Financial Services Committee. As the title suggests, it seems that there are some congress members that are not open to welcome large technology firms to the financial world.

Congress Members Draft Bill Against Fintech Companies

A new draft related to tech companies entering the financial world has been shared on social media and was apparently proposed by congress members. As reported by The Block, the bill wants to prevent tech firms from becoming financial institutions. This comes after the announcement made by Facebook about its virtual currency Libra.

In addition to restricting tech companies from entering the financial market, the new bill wants to prohibit companies from establishing, maintaining or operating digital assets that could be used as a medium of exchange, unit of account or as a store of value.

The document released reads as follows:

“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.”

The Senate Banking Committee is going to have a hearing on July 16 about Libra, Facebook’s recently released virtual currency. The goal is to receive more information from Mark Zuckerberg, the CEO of Facebook and David Marcus, the head of the Libra project.

The blockchain project presented by Facebook has been criticized by many individuals in the past few weeks. For example, the chair of the Financial Services Committee Maxine Waters initiated these hearings about Libra on June 18.

A few days ago, U.S. President Donald Trump wrote on Twitter that Facebook is trying to become a bank and if they want to do so they will have to become subject to banking regulations.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,274FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today