US Senators Elizabeth Warren and Richard Blumenthal have expressed concerns regarding Meta's plans to introduce its own stablecoin in a letter to CEO Mark Zuckerberg. With a Senate vote on the GENIUS Act approaching, the senators highlighted the need for transparency about Meta's potential influence on the stablecoin legislation. They referenced the company's prior attempts with the Libra and Diem projects, which faced substantial regulatory pushback. The senators cautioned that if Meta controlled a stablecoin, it could lead to increased surveillance of consumer transactions and extensive data collection, ultimately enabling the company to monetize sensitive user information. Reports indicate that Meta may explore integrating stablecoin payments across its platforms, including Facebook and WhatsApp, although details on whether it will collaborate with existing issuers like Tether or Circle or develop its own stablecoin remain unclear. This letter and ongoing discussions precede critical votes regarding the regulation of payment stablecoins in the US Senate.

Source 🔗