Audio By Carbonatix
Democrats in Congress are considering a new bill that would stop Facebook’s cryptocurrency plans in its tracks.
Dubbed the Keep Big Tech Out of Finance Act, the new bill would explicitly ban large platform companies from performing banking functions.
The bill would be a direct rebuke to Facebook’s plans with the Libra cryptocurrency, which would likely have to be severed from the company if the bill were introduced and passed.
The bill has not yet been introduced to Congress, and as a result, its contents are far from final. Still, it has been the subject of significant interest as representatives from Facebook appear before the House Banking Committee on Wednesday.
The Verge obtained a draft copy of the bill that was circulated for discussion.
The text of the bill says simply “A large platform utility may not be, and may not be affiliated with any person that is, a financial institution,” with further sections spelling out the definitions of various terms. Most notably, “large platform utility” is defined as “a technology company with an annual global revenue of $25,000,000,000 or more...predominately engaged in the business of offering to the public an online marketplace, an exchange, or a platform for connecting third parties.”
It is not clear what such a rule would mean for tech-oriented finance companies like PayPal or Square if they were to reach $25 billion in annual revenue.
However, it would certainly apply to Facebook, and bar any involvement with Libra as affiliation with a financial institution. It remains to be seen how much support the bill will receive from lawmakers, but the bill raises the stakes significantly as Facebook executive and Libra architect David Marcus heads to the hill for House and Senate hearings this week. Many of the same lawmakers had previously asked Facebook to halt development on the project.
The project has already received significant skepticism from the executive branch. In a briefing this morning, Treasury secretary Steve Mnuchin expressed concerns that the project could be more useful to criminals than legitimate users.
“The Treasury Department has expressed very serious concerns that Libra could be misused by money launderers and terrorist financiers,” Mnuchin said. “We will not allow digital asset service providers to operate in the shadows.”
Latest Stories
-
Police hunt gunmen after fatal robbery attack on Mobile Money vendor
3 hours -
Speaker Alban Bagbin donates 16,584 uniforms, commissions two classrooms at Nadowli-Kaleo
3 hours -
Sweety Aborchie Writes: The Half-Built Staircase, Women, Power, Politics (Issue 4)
4 hours -
See the areas that will be affected by ECG’s planned maintenance on Tuesday, June 9
4 hours -
KMA orders immediate evacuation ahead of Santasi-Asokwa Interchange construction
4 hours -
I’ll be the first Ashanti Regional Chairman to become NPP National Chairman – Wontumi
4 hours -
I’m willing to sacrifice everything for NPP’s 2028 victory – Wontumi
4 hours -
I had to tell my children we’re renovating the house – Father reveals after court-ordered eviction displaces his family
4 hours -
GES releases Academic Intervention Fund for schools
4 hours -
Canada issues strict food import rules ahead of FIFA World Cup 2026
4 hours -
No one can campaign more than me – Wontumi declares readiness to unite and lead NPP
4 hours -
Permit audit step in right direction but not enough – Structural engineer
4 hours -
‘We want power, not English lessons’ – Chairman Wontumi
4 hours -
Kotoko appoint former Dutch goalkeeper Stanley Menzo as Technical Director
5 hours -
Wontumi says challenges have prepared him to lead NPP to victory
5 hours