With the US Senate anticipated to vote on laws to manage cost stablecoins quickly, two senators known 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 mentioned 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 anticipated vote on the GENIUS Act within the Senate.
The 2 lawmakers requested the CEO to offer data on any corporations with which Meta could 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 President Donald Trump issuing a waiver to Meta underneath 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 shoppers’ transactions and business exercise,” mentioned the senators. “The large quantities of shopper knowledge it will 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 non-public data by gross sales to 3rd social gathering knowledge brokers.”
The letter adopted stories suggesting that Meta was exploring the mixing of stablecoin funds into its platforms, which embrace Fb, Instagram, Threads, Messenger and WhatsApp. Whether or not the corporate could 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: Demise of Meta’s stablecoin challenge was ‘100% a political kill’ — Ex Diem boss
This can be a creating story, and additional data shall be added because it turns into obtainable.
