Democrats Want To Punish Companies For Introducing Cryptocurrencies

1 min reading
Democrats Want To Punish Companies For Introducing Cryptocurrencies

Democrats proposed a bill that is supposed to punish technology companies with a fine amounting to million dollars a day for putting cryptocurrencies into circulation.

Proposed bill

The whole situation was reported by the Reuters agency last week when the bill appeared on the internet. It can have an impact on Facebook, which is just about to launch Libra. The bill has already been sent to the Financial Services Commission in the House of Representatives where the Democrats are a majority.
A large platform can not enter, maintain and operate any digital assets that arise as a medium of exchange, unit of account, store of value, or any other similar function in the definition established by the Federal Reserve System.
- states the bill. The reports indicate that the bill is a direct attack on Facebook's legislators. It is called "Keep Big Tech Out of Finance Act". Democrats are determined to implement it, but the Republicans - who are supposed to be more open to innovation - are to do everything to prevent it from entering into force.

Problems with Libra

There is nothing more to say about doubts connected with Facebook cryptocurrency. Debates on Libra, however, will be hold by the Congress not earlier than July 16 and 17. Moreover, Facebook and its partners in the project have been requested to suspend it. Congress wants the work to not be carried out when there are no clearly defined legal aspects of Libra. Jerome Powell, the head of the Federal Reserve, stated that he is aware of both profits and risks of Facebook's cryptocurrency. In addition, he admitted that he is not worried about the fact that banks may lose their significance in creating monetary policy. Donald Trump's opinion expressed on his Twitter account in which he showed his skepticism towards Libra, BTC and cryptocurrencies was also an indication of the dimension of the interest the situation sparked. The involvement of the US president in this matter is considered as a great step forward in the development of the industry.