New York (CNN Business) New proposed legislation drafted by Democratic Congresswoman Maxine Waters' staff could stop Facebook's cryptocurrency ambitions.

The proposal, still just a discussion draft, is titled the "Keep Big Tech Out of Finance Act." It details rules that would prohibit large internet platforms from becoming financial institutions or offering cryptocurrencies.

The draft will be a topic at a House Financial Services committee hearing on Wednesday about Facebook's plan to launch a digital currency called Libra . Waters chairs that committee. The Senate Banking Committee will take up Libra on Tuesday.

The proposed legislation would affect more than Facebook. It would prohibit all large internet companies from affiliating with or becoming financial institutions — including domestic or foreign banks, credit unions and depository institutions, among others. The prohibition would go into effect one year after the bill's passage.

Facebook's FB The draft bill was circulated by Waters' committee staff. Waters has loudly opposed Libra since it was announced last month . Facebook says Libra will be a digital currency managed by an independent association in Switzerland that could speed up online payments and improve financial inclusion. Libra is expected to launch in early 2020.

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