Bloomberg Law
July 14, 2019, 11:31 AM

Facebook Crypto Project Targeted by New House Democratic Bill

Lydia Beyoud
Lydia Beyoud
Fintech & Regtech Reporter

Facebook and other big tech companies would be prohibited from acting as financial institutions or issuing cryptocurrencies under draft legislation circulated by the House Financial Services Committee’s Democratic majority.

Tech giants with $25 billion or more in revenue would be barred from offering banking or other financial services, including lending, taking deposits, operating alternative trading systems, or acting as investment companies under the draft bill. Violations would be subject to $1 million in daily penalties, according to the discussion draft circulated in advance of the committee’s July 17 hearing on Facebook’s proposed Libra project.

The draft bill could hit existing ...

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