US Senators Elizabeth Warren and Richard Blumenthal have formally addressed Meta CEO Mark Zuckerberg, seeking detailed information about the company’s potential plans to launch or integrate a new stablecoin. Their inquiry is taking place amid an ongoing legislative debate in the US Senate concerning stablecoin regulation, including the upcoming vote on the GENIUS Act. The senators’ letter highlights concerns around Meta’s historical regulatory challenges with its previous stablecoin projects, Libra and Diem, which faced intense international opposition and were eventually discontinued.
The senators question how Meta's current stablecoin plans differ from the Diem project and whether Meta has engaged in lobbying activities related to stablecoin legislation. They also express deep worries about privacy implications, specifically how Meta could leverage financial transaction data to enhance intrusive advertising or monetize private user information.
Despite winding down the Diem Association, Meta reportedly continues to explore stablecoin and digital asset integrations, particularly in its metaverse and Web3 ventures. This proactive scrutiny by lawmakers aims to ensure any new Meta stablecoin efforts comply with robust consumer protection standards and financial stability safeguards upfront, rather than reactively addressing issues post-launch.
The senators’ inquiry is part of broader global discussions on suitable frameworks for stablecoin oversight. Given Meta’s scale and prior regulatory hurdles, its intentions remain a focal point in this evolving landscape.