The Keep Big Tech Out of Finance Act would prohibit large platforms from developing a virtual currency or affiliating with financial institutions.
After questioning Facebook founder Mark Zuckerberg at the House Financial Services Committee hearing on Oct. 23, 2019, Rep. Jesus "Chuy" Garcia (D-Ill) introduced legislation that would block Facebook, and other "large platform utilities," from developing digital currencies. The Keep Big Tech Out of Finance Act would also prohibit the platforms from affiliating with financial institutions—any platforms that are currently affiliated with a financial institution would be required to end their relationship within one year of the bill’s enactment. The platforms would also have one year to wind down any cryptocurrencies they currently maintain.
The bill defines a "large platform utility" as a technology company with an annual global revenue of at least $25 billion that is "predominately engaged in the business of offering to the public an online marketplace, an exchange, or a platform for connecting third parties." Violators of the law, if enacted, would face fines up to $1 million per day.
"Left unregulated, Facebook is another ‘too-big-to-fail institution’ like those that caused the 2008 financial meltdown," warned Garcia. "Not only will Facebook use their monopoly on private data to manipulate markets, consumers will be exposed to immense financial risks without government protections for their money or investments."
MainStory: TopStory BankingFinance Blockchain ChecksElectronicTransfers FedTracker FinTech
Interested in submitting an article?
Submit your information to us today!Learn More
Banking and Finance Law Daily: Breaking legal news at your fingertips
Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on banking and finance legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.