PANews reported on June 12 that, according to Cointelegraph, Democratic Senators Elizabeth Warren and Richard Blumenthal jointly sent a letter to Meta CEO Mark Zuckerberg, demanding an explanation for the company’s potential stablecoin plans. The letter comes as the Senate is about to vote on the GENIUS Act, which aims to regulate the payment stablecoin market. Here are the main reasons why the two senators oppose Meta’s renewed stablecoin ambitions:
Threat to competition: Big tech companies issuing or controlling their own private stablecoins would threaten competition across the economy. Meta has 3.5 billion daily users, and it could distort competition by steering users toward its own services and excluding rivals.
Erosion of financial privacy: If Meta controls its own stablecoin, it could exploit vast amounts of consumer financial data to fuel invasive advertising, manipulate pricing, or sell information to third parties.
Systemic risk: Stablecoins themselves carry systemic risk. Citing the brief de – pegging of USDC in 2023, the senators are concerned about potential taxpayer bailouts.
History of violations: Given Meta’s history of privacy violations, compliance issues, and failures to protect users, allowing it to run a private currency could pose serious money – laundering, consumer – protection, and national – security threats.
The two senators asked Zuckerberg to provide detailed information on Meta’s current stablecoin ambitions, including which companies it has consulted since January 2025, whether it plans to launch or partner on a stablecoin, and which of its platforms might support such payments. They also asked if Meta has lobbied on crypto – related legislation like the GENIUS Act or the Stable Act and whether it has engaged on provisions that could allow it to bypass restrictions. Additionally, they want to know how Meta’s new plans differ from its previous Libra and Diem efforts and what steps it has taken to address past regulatory concerns, with a response requested by June 17.
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