Meta Faces Scrutiny Over Stablecoin Plans

Key Takeaways

• The U.S. Senate Banking Committee has advanced the GENIUS Act, aiming to regulate stablecoins with provisions for reserve backing and consumer protection.

• Senators Warren and Blumenthal have called on Meta to disclose any plans related to stablecoin development, expressing concerns over potential regulatory exemptions.

• Meta’s previous stablecoin initiatives, Libra and Diem, faced significant regulatory challenges, leading to their eventual discontinuation.

Urgent Clarity Needed

Senators Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT) have penned a letter to Meta CEO Mark Zuckerberg, urging transparency regarding the company’s potential plans to introduce a new stablecoin.

Letter To Mark Zuckerberg From Senators Elizabeth Warren & Richard Blumenthal

Source: U.S. Senate Banking Committee

This call for clarity comes in the wake of Meta’s previous attempts with the Libra and Diem projects, which were halted due to regulatory concerns.

GENIUS Act Advances in Senate

On March 13tj, 2025, the U.S. Senate Banking Committee voted 18-6 to advance the GENIUS Act. The bill aims to establish a federal framework for stablecoin regulation, including requirements for reserve backing, anti-money laundering compliance, and consumer protection measures.

Despite bipartisan support, the bill has faced criticism from some lawmakers. Senator Warren has expressed concerns that the legislation could facilitate the entry of large tech firms like Meta into the financial sector without adequate oversight, potentially leading to increased surveillance and data privacy issues.

Meta’s Potential Role

The senators’ letter highlights reports suggesting that Meta is exploring the integration of stablecoin payments across its platforms, including Facebook, Instagram, Threads, Messenger, and WhatsApp. While Meta’s communications director, Andy Stone, has publicly stated that there is “no Meta stablecoin,” the lack of detailed information has fueled speculation about the company’s intentions.

Warren and Blumenthal are particularly concerned about the possibility of Meta receiving a waiver under the GENIUS Act, which could exempt the company from certain regulatory requirements imposed on other stablecoin issuers. Such an exemption might allow Meta to leverage its vast user base and data resources to gain a competitive advantage in the digital payments space.

Historical Context: Libra & Diem

Meta’s previous ventures into the stablecoin arena, Libra and its successor, Diem, were met with significant opposition from regulators and lawmakers worldwide. Both projects were ultimately abandoned, with Diem being sold off in early 2022.

Andy Stone Confirming There Is No Meta Stablecoin

Source: 

Moreover, the backlash centered on concerns over financial stability, monetary policy, and the potential for large tech companies to issue their own currencies.

The senators’ current inquiry underscores the ongoing apprehension regarding Meta’s influence in the financial sector and the need for stringent regulatory oversight to prevent potential misuse of consumer data and market dominance.

FAQ

What is the GENIUS Act?

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) is proposed legislation aimed at creating a federal regulatory framework for stablecoins. It includes provisions for reserve requirements, anti-money laundering compliance, and consumer protection measures.

Why are Senators Warren and Blumenthal concerned about Meta’s involvement in stablecoins?

The senators are concerned that Meta’s potential entry into the stablecoin market could lead to increased surveillance of users and give the company an unfair advantage over other financial institutions. They are also wary of the possibility that Meta could receive regulatory exemptions under the GENIUS Act.

Has Meta launched a stablecoin?

As of now, Meta has not launched a stablecoin. The company’s communications director has stated that there is “no Meta stablecoin.” However, reports suggest that Meta is exploring the integration of stablecoin payments across its platforms.

What happened to Meta’s previous stablecoin projects, Libra and Diem?

Both Libra and its successor, Diem, were abandoned due to regulatory pushback. Libra faced criticism from regulators and lawmakers worldwide, leading to its rebranding as Diem. However, Diem was eventually sold off in early 2022.

What is the next step for the GENIUS Act?

After passing the Senate Banking Committee, the GENIUS Act will proceed to a full Senate vote. If approved, it will move to the House of Representatives for consideration before potentially reaching President Trump’s desk for signing into law.