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US may bar big tech firms like Facebook from offering financial services, digital currencies
- Democrats said to be proposing laws just days after Donald Trump demanded companies follow the rules if they wanted to ‘become a bank’
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A proposal to prevent big technology companies from functioning as financial institutions or issuing digital currencies has been circulated for discussion by the Democratic majority that leads the House Financial Services Committee, according to a copy of the draft legislation seen by Reuters.
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In a sign of widening scrutiny after Facebook’s proposed Libra digital coin aroused widespread objection, the bill proposes a fine of US$1 million per day for violating such rules.
Such a sweeping proposal might spark opposition from Republican members of the house who are keen on innovation, and could struggle to gather enough votes to pass the lower chamber.
Even if it were to pass the full house, it would still have to pass the senate which would also probably be an uphill struggle.
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Nevertheless, the draft proposal sends a strong message to large tech firms increasingly eyeing the financial services space.
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