“Keep Big Tech out of Finance” Act Surfaces, after Donald Trump Tweets on Bitcoin and Libra

A drafted bill entitled “Keep Big Tech out of Finance” dated July 21,  has surfaced online, allegedly deriving from within the United States House of Representatives Financial Services Committee.

 

“KEEP BIG TECH OUT OF FINANCE” Act

 

The bill’s provenance is unconfirmed, but crypto news site, The Block, quotes an inside source as saying it is with the Financial Services Committee.

 

The document reads: 

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 alleged bill goes on to define “a large platform utility” as a tech company, that earns annual global revenues in excess of $25 billion. 

 

This bill seems clearly designed to preempt congressional authority to take decisive action on the issue of Libra.

 

Libra has attracted commentary and criticism from many corners. Chair of the Financial Services Committee Maxine Waters initiated the congressional hearings on Libra on June 18, by calling for a moratorium on the project. 

 

 

As Cointelegraph reported at the time, Representative Waters wrote: 

 

Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress, and regulators, have the opportunity to examine these issues and take action”

 

The night of July 11, US President Donald Trump tweeted similar concerns about the lawfulness of crypto usage, expressing opposition to Libra, Bitcoin, and cryptocurrencies as a whole, instead of promoting the continued dominance of the US Dollar.

 

It was also reported that Japanese authorities are investigating the impact of Facebook’s Libra stable coin.

 

Per the report, Japanese authorities have set up a liaison conference, tasked with investigating the impact of Facebook’s stable coin on monetary policy, and financial stability. The conference will reportedly consist of the Bank of Japan, the Ministry of Finance and the Financial Services Agency and has already started meeting this week.

 

The report claims that the objective of the newly formed group, is to coordinate policies, that would address the consequences of Libra’s implementation on regulation, tax, monetary policy, and payments settlement.

 

Unspecified officials reportedly noted that they hope that more tax, and financial regulators will join the group, given the broad impact of Facebook’s project. Japan has taken the initiative on ahead of the upcoming meeting of the G7 finance ministers in Chantilly, France, on 17 and 18 July.

 

As Cointelegraph reported at the end of June, France created a G7 taskforce to examine how central banks can regulate cryptocurrencies, such as Libra, in anticipation of the same summit.

 

It is not only regulators who are worrying about Libra. Yesterday, news broke that Ethereum’s co-founder Mihai Alisie is concerned, that Facebook is attempting to hoodwink regulators into approving a centralized “cryptocurrency.”

 

Please leave your questions and comments below: