US Congress can ban large companies from launching crypto assets

Posted 15 July, 2019

The US Congress has reportedly received a proposal to ban technological giants from running their own assets like Libra. This move was made in ahead of upcoming hearings of the Libra issue in the US Congress.

The sources stated that the draft of a new document was submitted to the Financial Services Committee of the House of Representatives. Under the bill, it planned not to let large companies create, support or back crypto assets that can be used for mass application as an exchange means or store of value.

It was proposed to include into the list technological companies that record annual income over $25 billion. These companies offer services that help third parties connect with other players (marketplaces, exchanges). 

Any company from the list that decides to violate the law will face a fine of $1 million per day.

A good example of the companies to be on the list is Amazon and Facebook.

The crypto community welcomes such a move. The players believe this law will be positive for bitcoin. However, the chance for positive determination on the draft law is very low.

It should be mentioned Facebook has been facing pressure from the US officials since it announced the launch of its Libra crypto project. They require that the company should suspend development of the project until unclear aspects were settled.

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15 July, 2019 13:25

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15 July, 2019 10:39

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