- U.S. Senators have requested details from Meta about its stablecoin projects.
- Concerns include the possibility of Meta using financial data and gaining economic power.
- The request comes after reports of Meta discussing stablecoin integration with crypto firms.
- Meta’s previous stablecoin attempts, Libra and Diem, ended due to regulatory opposition.
- The Senate is considering the GENIUS Act, which could let large tech firms offer stablecoins.
Senators Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut have sent a letter to Meta CEO Mark Zuckerberg, asking for information about the company’s renewed plans to use stablecoin payments on its social platforms.
The senators made this request after reports revealed that Meta is in talks with cryptocurrency companies to explore stablecoin payments across Instagram, Facebook, and WhatsApp. Warren and Blumenthal warned that Meta‘s large user base of 3.5 billion people could give it significant influence over financial transactions and competition.
In their letter, they wrote, “Big Tech companies’ issuing or controlling their own private currencies, like a stablecoin, would threaten competition across the economy, erode financial privacy, and cede control of the U.S. money supply to monopolistic platforms that have a history of abusing their power.” They also stated that Meta could use consumer data to drive more targeted advertising and data sales, potentially putting user privacy at risk.
The inquiry follows USDC-circle-diem-libra/”>recent coverage about Meta’s renewed interest in stablecoins after its earlier projects, Libra and Diem, were abandoned due to heavy regulatory scrutiny and opposition. Diem was shut down and its assets were sold in 2022.
Warren and Blumenthal asked Zuckerberg to answer questions by June 17, including what companies Meta has consulted, whether it is developing its own stablecoin, and if it plans to lobby for or against limits on “Big Tech” firms issuing stablecoins. Stablecoins are cryptocurrencies tied to assets like the U.S. dollar that are intended to keep their value stable when used for payments.
The timing of the inquiry comes as the Senate moved to advance the GENIUS Act, which would allow large technology companies such as Meta to issue stablecoins. Warren objected, saying, “By passing the GENIUS Act, the Senate is not only about to bless this corruption, but to actively facilitate its expansion.”
Previously, Meta’s communications director stated there was “no Meta stablecoin” under development, but the company has not commented further on the new inquiry.
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