A bill is currently in circulation according to a report by Reuters on July 15th that aims to prevent giant tech firms from issuing cryptocurrency. The bill will fine firms as high as $1 million per day if they issue cryptocurrency.
This is coming ahead of the Congressional Hearings on the proposed Facebook cryptocurrency and wallet Libra and Calibra respectively.
According to the Reuters, in the bill it is stated that:
“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a 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”.
This presents a fascinating picture that the government is at least trying to get to fully understand cryptocurrency.
The draft bill which is titled “Keep Big Tech Out of Finance Act” appears to be a prevention tool to curb the possible expansion of tech giants into the cryptocurrency industry as the move of Facebook Libra will inevitably compete with the US Dollar.
In a report published by CrytoTVPlus, President Trump clearly and vocally expressed his opinion on the Facebook Libra. He said if Facebook and other firms will want to be come a bank, they should seek a new banking charter and be subject to banking regulations.
While creator of the McAfee Antivirus John McAfee has expressed his view on government intervention on crypto regulations, where says the effort is doomed to fail.
The current market situation may be reacting to the tweet by the leader of the free world. Till July 16th, the outcome of the Facebook Congressional hearings will determine what the future for Tech giants who desires to go crypto.