Senate Democrats Query Meta on Stablecoin Plans
Senate Democrats Elizabeth Warren and Richard Blumenthal are reaching out to Meta to clarify its intentions about its stablecoin initiative.
In a letter addressed to the social media company formerly known as Facebook, they asked the company to elaborate on its stablecoin plans. They cited prior concerns about scams, alleged anti-competitive practices, and privacy lapses that Meta has faced.
Last month, it was reportedly mentioned that Meta is looking into utilizing stablecoins for transaction purposes.
The letter pointed out that “If Meta controls its own stablecoin, the company could deepen its reach into consumer transactions and commercial operations.” It further highlighted the vast amounts of consumer data Meta collects, suggesting it might exploit personal information for monetization through pricing strategies, more targeted advertisements, or selling data to third-party brokers.
Included in the correspondence were various questions, such as whether Meta is contemplating a new stablecoin launch and its stance on amendments that would inhibit large tech companies from monopolizing partnerships or ownership with stablecoin creators.
The lawmakers also asked how this new stablecoin strategy, initiated in 2019, differs from the now-defunct Libra project (which was later renamed Diem).
The letter reflects on how Meta’s attempt to introduce a private currency back in 2019 faced significant bipartisan and global pushback.
A representative from Meta has yet to respond to requests for comment.
This inquiry is likely linked to impending Senate discussions on the proposed Genius Act, which pertains to stablecoin regulation. Senate Majority Leader John Thune indicated a few weeks ago that the body might consider amendments to this bill, though clarity on that front has been limited recently.
There’s potential for the bill to be passed without changes. Senator Ruben Gallego mentioned last week that he believes it could easily achieve the necessary 60 votes, with the expectation that a majority of Republicans and at least 16 Democrats would support it.
