US lawmakers are mulling a new bill that will boost bitcoin and prohibit tech monopolies from launching their own cryptocurrencies. The draft discussion has surfaced ahead of Facebook’s scheduled congressional hearing this week on the Calibra crypto project.
Bill Bullish For Bitcoin
The July 12 dated draft entitled ‘Keep Big Tech Out Of Finance’ surfaced online apparently originating from within the United States House of Representatives Financial Services Committee. The primary directive is to prevent internet and technology giants becoming financial institutions. It also aims to prohibit these firms “establishing, maintaining, or operating a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value,” as defined by the Board of Governors of the Fed, according to reports.
According to the draft any tech corporation with annual global revenue of more than $25 billion, which is engaged in offering online public marketplaces, exchanges, or platforms for connecting third parties, would fall under the act if passed. A daily fine of a million dollars would be levied for offenders.
Morgan Creek Digital co-founder and Bitcoin permabull, Anthony Pompliano, tweeted that the move was extremely bullish for BTC.
“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!”
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! 🔥
— Pomp 🌪 (@APompliano) July 13, 2019
Managing partner at BlocktownCap, James Torado, added:
“Governments have been pretty effective at shutting down alternative currencies. They are using that same playbook on Libra. Bitcoin is different bc they have no company to drag into court. They could ban ownership of bitcoin like they did to gold in the mid 20th century though.”
Facebook In The Firing Line
It is clear that the new bill is aimed at Facebook and its proposed foray into digital finance. The Libra hearing is scheduled before the Senate Banking Committee on July 16, and with the House Financial Services Committee on July 17.
Libra has come under fire from several directions over the last month. Nations are expressing concern over the social media giant’s monopoly on data and control over the US pegged stablecoin with a potential market of over 2 billion people. Some country’s such as China and India have banned the project before it has even got off the ground.
Facebook’s woes are deepening; just yesterday the firm was fined a record $5 billion by the Federal Trade Commission for alleged privacy mishaps. The company clearly cannot be trusted with data, and Congress appears to feel the same about finances.
Will the new bill be bullish for Bitcoin? Add your thoughts below.
Images via Shutterstock, Twitter: @APompliano