Two prominent Democratic senators have challenged Meta’s intentions around stablecoin payments, pressing the social media giant for transparency on its ambitions after earlier failed attempts in the crypto space.
Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) sent a detailed letter to Meta CEO Mark Zuckerberg, expressing concerns about the company’s growing economic influence and potential privacy risks linked to stablecoins.
Source: US Senate Banking Committee
Warren and Blumenthal warned that if Meta were to issue its own stablecoin, it could pose serious risks to competition and consumer privacy.
With a user base exceeding 3.5 billion daily, Meta’s reach could allow it to consolidate immense financial power, potentially overshadowing rivals and distorting the market.
The senators highlighted Meta’s “troubling record,” cautioning that stablecoins could enable the company to delve deeper into user transactions and commercial activities.
This access to vast amounts of personal data, they argued, might be used to intensify surveillance pricing or targeted advertising, or to monetise sensitive information through third-party data brokers.
Meta’s current interest in stablecoins recalls its previous attempt to launch Libra in 2019, a project later rebranded as Diem, which collapsed under widespread regulatory scrutiny and political pushback before selling off its assets in 2022.
The senators linked this history to their concerns, pointing out that Meta had faced bipartisan resistance over Libra’s potential to disrupt financial systems and raise privacy issues.
Fearing unchecked power and data exploitation, the letter warned,
“If Meta controlled its own stablecoin, the company could further pry into consumers’ transactions and commercial activity.”
Warren and Blumenthal demanded answers by 17 June to eight specific questions.
They sought clarity on whether Meta plans to launch its own stablecoin or integrate existing ones like USDT or USDC into platforms such as Facebook, Instagram, WhatsApp, and Messenger.
The senators also asked if Meta had engaged with crypto companies or lobbied on recent stablecoin legislation in Congress.
Of particular interest was whether Meta would oppose any amendments aimed at preventing Big Tech firms from controlling stablecoin issuers.
This question comes as the Senate prepared to vote on the GENIUS Act, a bill that could explicitly permit companies like Meta to issue their own stablecoins.
The senators’ letter arrived as the Senate prepared to vote on the GENIUS Act, which some see as opening the door for Big Tech’s entry into stablecoin issuance.
Senator Elizabeth Warren criticised the bill, warning about the deepening ties between crypto firms and political influence.
“By passing the GENIUS Act, the Senate wouldn’t just be endorsing this corruption — it would be helping it grow.”
Senate Majority Leader John Thune indicated uncertainty about possible amendments, while Senator Ruben Gallego expected bipartisan support sufficient to pass the bill without changes.
Meta has publicly denied current stablecoin development.
Andy Stone, the company’s communications director, stated on X (formerly Twitter) in early May,
“Diem is “dead.” There is no Meta stablecoin.”
Despite this, reports suggest ongoing talks with crypto firms about potential integration of stablecoin payments into Meta’s suite of social apps.
Meta has yet to comment on the senators’ letter, and it remains unclear whether the company intends to revisit a stablecoin project or focus on partnerships with existing issuers.
This renewed scrutiny places Meta’s stablecoin ambitions at the centre of a broader debate over the role of Big Tech in finance, privacy, and competition as Congress weighs new regulatory frameworks.
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