Facebook’s upcoming stable coin Libra seems to have caught the regulators and policymakers around the globe off-guard. Ever since its official announcement back in June, Libra has been subjected to tons of scrutiny, calls for the halt of the project, and in certain cases even outright ban.
Facebook is scheduled to appear before Congress later this week to answer numerous queries of regulators related to its project Libra. However, right before the Congressional hearing, the leaders have drafted a discussion bill titled “Keep Big Tech Out of Finance Act“.
As the title says, the aim of this bill is to prohibit tech giants from venturing into the financial world. The bill, if made into law, would also prohibit these big tech giants from “establishing, maintaining, or operating a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value”
The draft seems to be a severe reaction to the Libra project; it prohibits any tech firm with annual revenue of more than $25 billion from venturing into the financial realm. Any tech giant that offers an online public marketplace, or operate an exchange or provide a similar kind of service to any third party service provider would fall under the definition and would be prohibited from engaging in any kind of financial service offerings.
Any company which falls under the mentioned category would be fined a whopping $1 million per day if they fail to abide by any subsection of the proposed bill. The bill is being floated by the House Financial Services Committee staff.