A drafted version of the bill called “Keep Big Tech out of Finance” has recently been leaked onto the internet on July 12, and is rumoured to be put together by the U.S House of Representatives Financial Services Committee themselves.
Although its legitimacy is yet to be confirmed, the crypto-related tech website The Block cited information received from within the Financial Services Committee. The site revealed:
“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 bill further provided a clearer definition for “a large platform utility” – a tech firm whose yearly international incomes exceeds the $25 billion mark.
Judging from the fact that Libra will be attending hearing sessions, with the Senate Banking Committee and the House Financial Services Committee on July 16 and 17 successively, this bill can be considered a preemptive effort from the congressional authority to take a decisive court of action concerning the arrival of Libra.
Libra has been the main talk of the town recently, receiving criticisms and comments from various institutions. Maxine Waters – a representative from the House Financial Services Committee of the U.S – has recently asked Facebook to put a hold on the progress of building its new digital coin project – the Libra, and scheduled a hearing session with Facebook on June 18.
“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”