The US Congress wants to legally prohibit developments such as Facebook’s Libra. On Friday, July 12, a draft bill called “Keep Big Tech out of finance” leaked out. The document is from the U.S. House Committee on Financial Services.
If the document is authentic and the law continues, tech companies may no longer issue their own cryptocurrency.
Tech companies cannot become a financial institution
Specifically, the bill states that internet and technology companies may not serve as financial institutions. The law is also intended to prohibit these companies from “developing and maintaining a digital asset that is used as a means of exchange, unit of account or store of value.”
According to the bill you speak of a tech company if there is a turnover of more than 25 billion dollars. In addition, a tech company offers its services on online public markets.
Is a company such as Facebook breaking this law? Then that company has to pay a daily fine of one million dollars. If this law continues, it may well be that Libra can never be launched.
Good for bitcoin?
The law therefore focuses specifically on companies such as Google, Amazon and Facebook. But what about bitcoin? Bitcoin is decentralized and has no company behind the coin. The law cannot therefore focus on bitcoin.
According to Anthony Pompliano, this law is therefore very good for bitcoin: another competitor less for bitcoin. He tweeted on Sunday evening April 14 that this development is “the most bullish for bitcoin in weeks”:
WOW !!
Congress has drafted a bill called “Keep Big Tech Out Of Finance” which would prevent large tech companies from becoming finance companies and launching digital assets.
Unlikely to succeed, but this is the most bullish thing for Bitcoin I’ve heard in weeks! ?
– Pump ? (@APompliano) July 13, 2019
James Torade also thinks the law can be a good development. Torado is managing partner at BlocktownCap: “Governments have been effective in stopping alternative currencies. They are now going to do the same at Libra. But bitcoin is different, since no bitcoin company can be dragged to court. “
The bill was drafted by order of the Democratic party and will be discussed this week.
What do you think? Is the bill a good or bad development for bitcoin and cryptocurrencys?
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