A draft discussion bill titled, "Keep Big Tech Out of Finance Act," has surfaced ahead of Facebook's slated congressional hearing this week.
The bill aims to prevent tech colossuses from becoming financial institutions. It also seeks to prohibit these companies from "establishing, maintaining, or operating a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value," as defined by the Board of Governors of the Fed.
According to the draft, any technology company with annual global revenue of more than $25 billion and predominately engaged in the business of offering online public marketplaces, exchanges, or platforms for connecting third parties would fall under the prohibition. These companies would be subject to a daily $1 million fine for violating either subsection of the bill.
A source familiar with the matter told The Block that the discussion draft is being floated by the House Financial Services Committee staff. However, it doesn't have an official lead yet.