Facebook can face $1 million fine per day

Facebook can face $1 million fine per day

A proposed bill to fine leading tech firms such as Facebook $1 million per day if they issue cryptocurrencies is being circulated by Democrats, Reuters studies on July 15.

Reuters cites a duplicate of draft legislation reported on by Coin telegraph when it first surfaced online last week and notes that it proposes to impose a $1 million fine every day upon any firm that violates its proposed rules.

Per Reuters, the bill is being put ahead for discussion by the Democratic majority leading the US House Financial Services Committee, and reportedly states that.

The report notes that the draft bill entitled the “Keep Big Tech Out of Finance Act” seems to be a mark of increased scrutiny from legislators sparked by Facebook’s current unveiling of its forthcoming Libra coin, which might have potential exposure to a combined 2.7 billion users every month.

Reuters still anticipates that “pro-innovation” Republicans will put their muscle behind blocking such a move and that the invoice might face yet steeper resistance should it pass the decrease chamber and be debated within the United States Senate.

Congress has asked hearings on Libra and requested that Facebook impose an official moratorium on Libra’s development until its considerations are examined and addressed.

Jerome Powell, head of the United States Fed, has in the meantime stated that he acknowledges each potential advantages and dangers to Libra. He further said that for now, the central bank is not overly concerned about no longer with the ability to implement the monetary policy because of cryptocurrencies more broadly, given the relative infancy of the asset class.

The renewed flurry of interest in crypto in part sparked by Libra’s announcement even prompted U.S. President Donald Trump to publicly voice his opposition to cryptocurrencies last week, with specific reference to both Bitcoin and Libra. Several commentators have taken the president’s engagement as a massive milestone for the industry.

Tanaya Tak

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