Lawmakers Press Meta Over Stablecoin Plans
Elizabeth Warren and Richard Blumenthal aren’t mincing words. The two Democratic senators sent a sharp letter to Meta CEO Mark Zuckerberg this week, demanding details about the company’s reported push into stablecoins—a move they argue could give the tech giant even more control over the economy.
The letter, dated Wednesday, warns that letting big tech firms issue their own digital currencies would “threaten competition” and “erode financial privacy.” With Meta’s platforms reaching roughly 3.5 billion users daily, the senators fear the company could effectively dominate financial transactions, squeezing out smaller players.
A Familiar Pattern?
This isn’t Meta’s first stab at digital currency. Remember Libra? Back in 2019, the company’s ambitious crypto project faced fierce backlash from regulators and lawmakers before fizzling out. The rebranded Diem initiative met the same fate, shutting down in 2022 after failing to gain traction.
Now, according to a recent *Fortune* report, Meta’s reportedly in talks with crypto firms about weaving stablecoins into Facebook, Instagram, and WhatsApp. Warren and Blumenthal see this as a red flag, pointing to the company’s “troubling record” of overreach.
“If Meta controlled a stablecoin,” they wrote, “the company could further pry into consumers’ transactions and commercial activity.” Stablecoins, for context, are cryptocurrencies tied to traditional assets like the U.S. dollar, often used for payments because they’re less volatile than Bitcoin or Ethereum.
Questions—and a Deadline
The senators aren’t just raising concerns—they want answers. Their letter includes eight pointed questions for Zuckerberg, due by June 17. They’re asking which companies Meta’s consulted, whether it plans to launch its own token, and if it’s lobbied on crypto legislation.
One big ask: Would Meta oppose rules stopping “Big Tech” from running stablecoin issuers? That question feels especially timely. On the same day the letter went out, the Senate voted 68-30 to advance the GENIUS Act, a bill that could pave the way for tech firms to issue stablecoins.
Warren didn’t hold back in her criticism, calling the legislation a gift to corporate interests. “The Senate is not only about to bless this corruption, but to actively facilitate its expansion,” she said on the floor, though her remarks seemed to veer into unrelated territory, referencing Donald Trump’s ties to a crypto platform.
Meta, for its part, has denied working on a stablecoin. In May, communications director Andy Stone posted on X that there’s “no Meta stablecoin” in development. Still, given the company’s history, it’s no surprise lawmakers are skeptical.
The clock’s ticking for Zuckerberg’s response. Meanwhile, the debate over who gets to control the future of digital money is far from over.
