Mubasher: Democratic majority-led House Financial Services Committee has been discussing a proposal to prevent major technology companies from working as financial institutions or issuing crypto currencies, Reuters reported, citing a copy of the draft legislation.

The bill, dubbed “Keep Big Tech Out Of Finance Act”, describes a large technology company as mainly a provider of an online platform service with at least $25 billion in revenue per annum.

“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as 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,” Reuters quoted the bill.

The draft legislation proposes a fine of $1 million per day for violating such rules, in an indication of widening scrutiny after Facebook’s Libra digital coin drew widespread criticism.

The social media company, and 28 partners, including Mastercard, PayPal and Uber, would form the Libra Association to control the new digital coin.

US President Donald Trump was the latest to criticise Libra and other crypto assets, urging companies to seek a banking charter and subject themselves to US and global regulations.

Previously, Federal Reserve Chairman Jerome Powell stated that Facebook’s proposal to build Libra could not proceed unless worries privacy, money laundering, consumer protection, and financial stability are assuaged.