Senators Warn Meta Over Stablecoin Plans Amid Privacy Concerns

Senators Elizabeth Warren and Richard Blumenthal have sent a letter to Meta CEO Mark Zuckerberg, expressing significant concerns over the company's renewed ambitions to launch a stablecoin. The 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.

The senators 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.

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 senators' concerns stem from Meta's previous attempt to launch Libra, a digital currency project that faced intense regulatory scrutiny and ultimately collapsed. The renewed interest in stablecoins by Meta has raised alarms about the potential for the company to exert undue influence over the financial system. Warren and Blumenthal warned that Meta's control over a private currency could lead to the erosion of financial privacy and distort competition in the market. The senators' letter comes at a time when the regulatory landscape for digital assets is evolving. The GENIUS Act, if passed, would impose strict regulations on stablecoins, requiring issuers to obtain a banking charter and comply with anti-money laundering laws. Meta's stablecoin plans would need to navigate this regulatory environment, which could pose significant challenges for the company.

The senators' pushback against Meta's stablecoin ambitions underscores the broader debate over the role of private companies in the financial system. While digital currencies offer the potential for innovation and efficiency, they also raise concerns about privacy, security, and competition. The senators' letter to Zuckerberg is a reminder that any company seeking to enter the digital currency space will need to address these concerns and comply with regulatory requirements. The senators' letter to Zuckerberg is a reminder that any company seeking to enter the digital currency space will need to address these concerns and comply with regulatory requirements. The senators' letter to Zuckerberg is a reminder that any company seeking to enter the digital currency space will need to address these concerns and comply with regulatory requirements.