Facebook and their Libra cryptocurrency project are obviously one of the targets of a new bill by U.S lawmakers attempting to ban big tech companies from venturing into finance officially.
Citing a draft regulation currently in circulation amongst leaders of the U.S House Financial Services Committee, Reuters reported the development today and identified the title of the new bill — Keep Big Tech Out Of Finance Act.
In the proposal, the lawmakers described big tech companies as firms that offer an online service platform which generates at least $25 billion annual revenue.
The proposal seeks to bar any company that fits into that category from establishing, maintaining, or operating a digital asset [cryptocurrency] "that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System."
Although the bill does not directly mention Facebook's Libra project, the company would likely be the first to be hard-hit if the proposed legislation makes its way through the lower house and gets adopted at the higher chamber.
The $25 billion thresholds proposed by the bill is half of the total revenue ($50 billion) which Facebook generated last year. Also, the consortium of tech companies forming Facebook's Libra association, are generating revenue above $10 billion, meaning they could easily surpass the $25 billion mark soon.
Meanwhile, the latest development is only one of the spates of a coordinated effort by global and financial regulators to halt Facebook's crypto project.
Last week, Jerome Powell, Chairman of the United States Federal Reserve Bank, said that Facebook cannot go ahead with its Libra cryptocurrency until there is “broad satisfaction with the way the company has addressed money laundering.”