On July 14th, before the upcoming Facebook Libra congressional hearing, a draft discussion entitled “Let Bigtech Stay Away from the Financial Act” surfaced.
It is reported that the bill aims to prevent technology giants from becoming financial institutions. It also attempts to prohibit these companies from “establishing, maintaining or operating a digital asset that is widely used as a medium of exchange, account units, and value storage,” as the Fed’s board of directors As defined.
According to the draft, any technology company with annual revenues of more than $25 billion worldwide, mainly engaged in online public markets, exchanges or platforms connected to third-party businesses, will be banned. If these companies violate any part of the bill, they will be fined $1 million a day.
- Facebook hearing testimony exposure: Libra will not be launched rashly until regulatory concerns are removed
A person familiar with the matter told The Block that the bill was proposed by the staff of the House Financial Services Committee, but it has not yet been formally adopted.
The following is the original text of the draft:
Put pressure on Facebook Libra
It can be seen that the draft proposal is directed at Facebook's Libra project. Prior to this, US lawmakers jointly issued a statement asking Facebook to suspend the project.
The response from Facebook is to ensure that its Libra project does not capture the user's personal financial information.
This also shows that Facebook will not easily give up the attitude of the Libra project, and the draft draft drafted by the Congress has put pressure on Facebook on the one hand and other technology giants on the other.
After the news was released, Nick Saab, the father of smart contracts, commented:
"The greater the impact of technology, the easier it is to become an attack target."
Some netizens commented that:
“Because of these under-conceived laws, the United States may become the least competitive jurisdiction in this area. Most companies will choose to set up outside the United States and may exclude US residents.”
What do you think?