With the US Senate anticipated to vote on laws to manage cost 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 corporations with which Meta might have consulted relating to stablecoins in 2025 and any affect it could have had on the stablecoin invoice within the Senate.
Notably, Warren and Blumenthal introduced up Fb’s Libra and Diem stablecoin initiatives, 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 beneath the GENIUS Act, permitting the corporate to “sidestep” rules imposed on different stablecoin issuers.
“If Meta managed its personal stablecoin, the corporate may additional pry into customers’ transactions and business exercise,” wrote the senators. “The huge quantities of shopper knowledge it might ingest may assist Meta gasoline surveillance pricing schemes on its platform, extra intrusive focused promoting, or in any other case assist the corporate monetize delicate personal info by way of gross sales to 3rd celebration knowledge brokers.”
The letter adopted studies 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 challenge 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 creating story, and additional info shall be added because it turns into accessible.
