With the US Senate anticipated to vote on laws to manage fee stablecoins quickly, two senators referred to as on Meta CEO Mark Zuckerberg to reply questions in regards to the firm’s potential plans to introduce one other stablecoin.
In a Wednesday letter to Zuckerberg, Senators Elizabeth Warren and Richard Blumenthal said it was “extra vital than ever that Congress and the general public totally perceive the extent of Meta’s plans” for stablecoins, given the dimensions of the tech firm and the expected vote on the GENIUS Act within the Senate.
The 2 lawmakers requested the CEO to offer info on any firms with which Meta might have consulted relating to stablecoins in 2025 and any affect it might have had on the stablecoin invoice within the Senate.
Notably, Warren and Blumenthal introduced up Fb’s Libra and Diem stablecoin tasks, which the corporate shut down amid widespread opposition from worldwide regulators. Within the letter, the senators expressed concern about US President Donald Trump issuing a waiver to Meta underneath the GENIUS Act, permitting the corporate to “sidestep” laws imposed on different stablecoin issuers.
“If Meta managed its personal stablecoin, the corporate might additional pry into customers’ transactions and industrial exercise,” wrote the senators. “The large quantities of shopper knowledge it might ingest might assist Meta gas surveillance pricing schemes on its platform, extra intrusive focused promoting, or in any other case assist the corporate monetize delicate non-public info by means of gross sales to 3rd social gathering knowledge brokers.”
The letter adopted stories suggesting that Meta was exploring the integration of stablecoin funds into its platforms, which embody Fb, Instagram, Threads, Messenger and WhatsApp. Whether or not the corporate might intend to make use of stablecoin from issuers like Tether or Circle — USDT and USDC, respectively — or pursue its personal undertaking was unclear on the time of publication.
Associated: Death of Meta’s stablecoin project was ‘100% a political kill’ — Ex Diem boss
It is a growing story, and additional info might be added because it turns into out there.
