According to Reuters, a bill to fine tech firms such as Facebook $1 million per day if they eventually issue cryptocurrencies is being circulated by Democrats.
Reuters said the bill is being proposed for discussion by the Democratic majority leading the United States House Financial Services Committee, and reportedly states that:
“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.”
According to the report, draft bill named “Keep Big Tech Out Of Finance Act” looks like a mark of increased scrutiny from legislators sparked by Facebook’s recent unveiling of its forthcoming Libra coin, which would have exposure to a combined 2.7 billion users each month.
Reuters notes Republicans will try blocking such a move, and that the bill could face yet steeper resistance should it pass the lower chamber and be debated in the U.S. Senate.
Congress has demanded hearings on Libra, and requested that Facebook and its partners impose pause Libra’s development until its concerns are examined and addressed.
Jerome Powell, head of the U.S. Fed, has said that he recognizes both potential benefits and risks to Libra.