With the US Senate poised to vote on the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act, which aims to regulate payment stablecoins, two senators have called on Meta CEO Mark Zuckerberg to clarify the company’s potential stablecoin – related plans.
In a letter dated June 11, Senators Elizabeth Warren and Richard Blumenthal stated that given Meta’s large – scale global user base and the impending vote on the GENIUS Act, it is of utmost importance that Congress and the public fully understand the scope of Meta’s stablecoin plans. They asked Zuckerberg to provide details on any companies that Meta has consulted regarding stablecoins in 2025 and to clarify whether the company has influenced the stablecoin bill in the Senate.
The letter comes in the wake of reports suggesting that Meta is exploring the integration of stablecoin payments into its platforms, including Facebook, Instagram, Threads, Messenger, and WhatsApp. The senators also raised concerns about the threats to financial privacy and industry competition posed by big tech companies issuing their own private currencies. They pointed out Meta’s previous Libra (later Diem) stablecoin projects, which were shut down due to widespread opposition from international regulators. The senators expressed concern that if Meta were to control its own stablecoin, it could further pry into consumers’ transactions and commercial activities, and the massive amounts of consumer data it would collect could be used to fuel surveillance pricing schemes on its platform, more intrusive targeted advertising, or other means of monetizing sensitive private information by selling it to third – party data brokers.
The senators also asked Meta to clarify whether it intends to issue and control its own stablecoin, or if it will form a partnership with an existing stablecoin company. They further requested the company to confirm if it has lobbied federal agencies on crypto legislation and to provide clarification if it has given any verbal or written feedback on the GENIUS Act. Additionally, they asked if Meta will oppose an amendment to the GENIUS Act that restricts big tech firms from owning, managing, or partnering with stablecoin issuers. Meta has until June 17 to respond to the senators.
The GENIUS Act is designed to foster innovation while safeguarding consumers and maintaining the dominance of the US dollar. It defines a payment stablecoin as a digital asset pegged to a fixed monetary value and establishes clear procedures for institutions seeking licenses to issue stablecoins, along with reserve requirements and regulatory standards for stablecoin issuers. However, the act has faced significant scrutiny and opposition, particularly regarding the potential for big tech companies like Meta to issue stablecoins. Senator Warren has been a vocal critic, arguing that the bill does not adequately prevent these firms from pursuing their own currencies, which she believes could lead to conflicts of interest, undermine competition, threaten financial stability, and erode financial privacy.
As the Senate prepares for a vote on the GENIUS Act, the debate over stablecoin regulation and the role of big tech companies remains heated. The outcome of this vote could have significant implications for the future of digital assets in the US, potentially accelerating the institutional adoption of blockchain technology while also raising important questions about consumer protection and financial stability.
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