The US can prevent large technology companies to release its own cryptocurrency

The US can prevent large technology companies to release its own cryptocurrency

In the U.S. Congress introduced a bill banning large technology companies to operate as financial institutions to issue digital currency. The proposal was circulated for discussion by the democratic majority, which heads the Committee on financial services of the house of representatives.

A new bill was submitted for consideration after the proposed Facebook cryptocurrency Libra caused panic in the ranks of the regulators. The document provides for a fine of $1 million a day for violation of the rules under which technology companies are prohibited from “creating, supporting, and servicing assets intended for mass use as a medium of exchange, unit of account or method of accumulation.”

Such a proposal is likely to cause resistance on the part of Republicans that support innovation, and probably struggles will hinder its adoption. But even if the bill passes the lower house, he would still have to enlist the support of the Senate, which probably will also be hard.

However, the bill sends a chilling signal to large technology companies, which are all closely watching the financial services market. In the document “Keep Tech Out Of Big Finance” it is said that a large technology company is the organization that owns the online platform with an annual income of more than $25 billion So under the new law will be and Amazon, and Facebook.

But the cryptocurrency community believes that the adoption of this law will have a positive impact on the industry. For example, American investor, co-founder of Morgan Creek Digital Assets and one of the main cryptooperation Anthony Pompliano in his Twitter account said that the rumors about the new bill — the best news for Bitcoin.

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