Will Congress’ New Crypto Laws Harm Bitcoin and Libra?

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US lawmakers were pretty busy in regards to digital currencies in 2019, drafting new bills that should provide clarity around stablecoins. The two laws proposed in July and October 2019 aim to regulate tech companies who want to create their own digital currencies. As such, the draft bill aims the gun at Libra, but if we take a deeper look at its specifics, it can hurt Bitcoin and other digital currencies as well.

The ‘Keep Big Tech out of Finance Act’ was proposed mid-July and set to go live in 2020. It aims to prevent major tech companies with online platforms and $25 billion in revenue annually from operating as financial institutions. This could deter Facebook and other online platforms from making their own digital assets, although the tech giant is reportedly not backing down.

Libra Still on Track

If there’s one company that qualifies as big tech, it’s Facebook. You probably already know that the social media giant plans to release its own digital currency. Called Libra, it should be out by mid-2020 if Congress gives the green light. There’s still a lot of controversy surrounding Facebook’s move, so it should be a while before Libra sees the light of day. The new proposed crypto laws make things even more complicated, so Zuckerberg and its team will have to think twice before the release.

Any violation of the ‘Keep Big Tech out of Finance Act’ would result in a massive fine of $1 million per day. This, however, hasn’t deterred Facebook from its plans to launch a digital currency that is supposed to dethrone Bitcoin.

This isn’t the only law that is supposed to outlaw digital currencies in the USA shortly. In October 2019, the Congress released a draft bill that aims to regulate stablecoins as securities. For those of you that don’t know, stablecoins are cryptocurrencies that work as a non-volatile (stable) source of value. If the bill is passed, all stablecoins including Libra will not be allowed to fluctuate. It also means that the same rules that apply to bonds and stocks will apply to digital currencies as well.

What Does This Mean for Bitcoin Gambling?

The Bitcoin gambling market is booming right now. BTC casinos are hitting the market with the speed of light and it doesn’t seem like it will stop anytime soon. However, the Congress proposed crypto laws could disrupt the natural evolution of Bitcoin gambling.

Bitcoin gambling is starting to take shape and as it grows, governments around the world will surely assess the situation before long. At the moment, Bitcoin gambling is one of the safest options out there in regards to online gaming. The blockchain is fully transparent and players love the fact that they can play games on the go while staying fully anonymous. We’re only at the start of the 2020, but it’s already shaping up to be a strong year for crypto players if legislation doesn’t come in its way.

January 2, 2020: • No Comments

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