US may prohibit large technology companies to issue cryptocurrencies

US lawmakers are discussing a bill designed to prevent large technology companies from releasing cryptocurrencies.

According to a Reuters report and a published copy of the bill, politicians in the House of Representatives of the US Congress are seeking to increase control over large technology companies that are interested in cryptocurrencies. In the section of the bill “Prohibitions related to cryptocurrencies” states:

“The use cases of a large platform cannot imply the support or use of a digital asset that is intended to be widely used as a medium of exchange, unit of account, means of accumulation or any other similar function, as determined by the Federal Reserve Board of Governors.

In the bill, a digital asset is defined as “an asset that is issued and transferred using the technology of a distributed registry or blockchain, including the so-called“ virtual currencies ”,“ coins ”and“ tokens ”.

The document also states that any large technology company with a global annual income of more than $ 25 billion may be subject to this law, and any violation of the proposed regulations may result in a penalty of “no more than $ 1 million for each day of such violation”.

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The bill came a few weeks later after Facebook announced a plan to release Libra cryptocurrency. It is reported that the company’s global revenue for 2018 was $ 55 billion. Since then, regulators around the world have been worried about how Facebook’s plans will be correlated with legislation.

Last week, US President Donald Trump also expressed his opinion on Libra. He said that “if Facebook or other companies are going to become banks, then they must register and meet all the requirements of banking regulation.”