Meta's Stablecoin Plan Questioned by Democrats Ahead of Key Senate Vote

Senate Democrats Elizabeth Warren and Richard Blumenthal privation Meta to explicate what its stablecoin plans are.

In a letter sent to the societal media elephantine connected Wednesday, the lawmakers asked the institution formerly known arsenic Facebook to item its stablecoin ambitions and pointed to erstwhile reports astir issues Meta has had with scams, "alleged anticompetitive conduct," and privateness issues.

Meta is considering utilizing stablecoins for payments, Fortune reported past month.

"If Meta controlled its ain stablecoin, the institution could further pry into consumers’ transactions and commercialized activity," the missive said. "The monolithic amounts of user information it would ingest could assistance Meta substance surveillance pricing schemes connected its platform, much intrusive targeted advertising, oregon different assistance the institution monetize delicate backstage accusation done income to 3rd enactment information brokers."

The missive included a database of questions, including whether Meta is reasoning astir launching its ain stablecoin, whether it oregon immoderate entity it's affiliated with has lobbied for the Senate oregon House's stablecoin measure oregon different provided feedback connected the bill. It besides asked whether Meta would propulsion backmost against an amendment that would artifact large tech firms from affiliating with oregon owning a stablecoin issuer.

It besides asked the institution to explicate however its caller stablecoin program mightiness disagree from the now-defunct Libra (later Diem) task Meta spearheaded successful 2019.

"The institution tried to contented its ain backstage currency successful 2019 — arsenic portion of the alleged Libra stablecoin task — and was met with overwhelming bipartisan and planetary opposition," the missive noted.

A spokesperson for Meta did not instantly instrumentality a petition for comment.

The missive comes the aforesaid time the Senate is acceptable to ballot connected the GENIUS Act, its stablecoin bill. Though Senate Majority Leader John Thune said weeks ago that the assemblage mightiness see amendments to the bill, helium told Politico earlier this week that the way for amendments was little clear.

The measure is apt to walk without immoderate amendments. Senator Ruben Gallego, an Arizona Democrat, told CoinDesk past week helium expected 16 Democrats to enactment the measure alongside a bulk of Republicans, easy clearing the 60-vote procedural threshold for cloture.