Lawmakers in the U.S. are discussing a bill that seeks to prevent large technology institutions in the country from issuing cryptocurrencies.
Under the section of "Prohibition related to cryptocurrencies," the draft bill, called "Keep Big Tech Out Of Finance Act," states:
The bill specifically defines a digital asset as "an asset that is issued and transferred using distributed ledger or blockchain technology, including, so-called 'virtual currencies,' 'coins,' and 'tokens.'"
It further clarifies any large tech firm with over $25 billion in global annual revenue could fall into this category and any violation of the proposed regulation should be subject to a fine of "not more than $1 million per each day of such violation."
While the bill is still in a discussion draft form and not yet formally submitted, the news comes just weeks after Facebook announced a plan to issue the Libra cryptocurrency on a blockchain. The firm booked $55 billion in revenue for 2018. Worldwide regulators have since then voiced concerns on how Facebook's plan can remain compliant with financial regulations across the globe.
Last week, the U.S. president Donald Trump made his first comments on cryptocurrencies via a series of tweets, in which he criticized Facebook’s Libra project had "little standing or dependability."
Libra image via Shutterstock
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