Meta's Stablecoin Strategy Under Scrutiny by Senators
Democratic senators are demanding explanations from Meta regarding its plans for stablecoins amid upcoming Senate votes.
Key Highlights
- Senators Elizabeth Warren and Richard Blumenthal have raised questions about Meta’s work on stablecoin integration.
- Their inquiries include whether Meta has lobbied for the GENIUS Act and if it opposes any restrictions on Big Tech companies owning stablecoin issuers.
- This letter coincides with Senate votes on the GENIUS Act.
Meta’s Potential Use of Stablecoins
Meta is exploring the possibility of using stablecoins for payment transactions. The senators expressed concerns that, should Meta develop its own stablecoin, it would significantly enhance the company’s ability to track user transactions, enabling more invasive data collection and targeted advertising.
In a communication sent to Meta, they demanded clarification on the company’s intentions regarding stablecoins, emphasizing the risks associated with user privacy and data usage.
The letter outlines specific queries, including Meta’s stance on launching its stablecoin and possible lobbying activities related to stablecoin legislation, as well as asking how its new plan might differ from the previous Libra project, which faced considerable political pushback in 2019.
As the Senate prepares to vote on the GENIUS Act, Senator Ruben Gallego anticipates strong bipartisan support for the bill.
