Senators Press Zuckerberg Over Renewed Meta Stablecoin Ambitions

In a letter sent Wednesday, the Democratic lawmakers cited “troubling reports” that Meta is exploring partnerships with crypto firms to integrate stablecoins for payment functionality, including microtransactions on platforms like Instagram.

The senators raised broad concerns about Meta’s potential control over a private currency, warning it could undermine financial privacy, distort competition, and give a monopolistic platform unprecedented power over U.S. monetary flows. “Big Tech companies’ issuing or controlling their own private currencies, like a stablecoin, would threaten competition across the economy, erode financial privacy, and cede control of the U.S. money supply,” they wrote.

Concerns Over Data Exploitation and Market Power

Warren and Blumenthal also highlighted the risk of data exploitation, arguing that Meta could misuse financial information for advertising, pricing manipulation, or third-party monetization. They warned that a Meta-backed stablecoin could give the company an unfair advantage over rivals and entrench its market dominance across its platforms, which serve 3.5 billion daily users globally.

The senators cited the collapse of Meta’s previous crypto ventures, Libra and Diem, as evidence of the dangers inherent in allowing Big Tech to experiment with private money. Despite regulatory pushback and bipartisan opposition, Meta’s renewed interest in digital currency has raised alarm bells in Washington, especially as the company continues to face scrutiny over data privacy, antitrust practices, and content moderation.

READ MORE:

Bitcoin Targeting $120,000 While Altcoins Signal Historic Breakout Potential

Lawmakers Demand Transparency on Meta’s Crypto Strategy

The lawmakers also questioned whether Meta is using its influence to shape crypto regulation. They asked if the company had engaged in lobbying efforts around legislation such as the GENIUS Act or the STABLE Act—both of which aim to establish clear regulatory frameworks for stablecoin issuers. They expressed concern that Meta might be seeking legal loopholes to bypass oversight, potentially reviving elements of its earlier initiatives under a new name or structure.

Specifically, the senators are requesting a detailed breakdown of Meta’s stablecoin-related activities since January 2025, including any partnerships, platform integration plans, and how the new initiative differs from Libra or Diem. They are also pressing Meta to explain what steps it has taken to address prior regulatory concerns. Responses are due by June 17 and could shape how lawmakers and regulators approach stablecoin oversight in the months ahead.

The post Senators Press Zuckerberg Over Renewed Meta Stablecoin Ambitions appeared first on Coindoo.