In short
- Elizabeth Warren pushed Meta to clearly present its stablecoin plans before the Senate votes on the Clarity Act.
- Warren warned that Meta’s push into stablecoin payments could affect “competition, privacy … and financial stability.”
- The senator asked CEO Mark Zuckerberg to explain plans for Meta’s stablecoin and partnerships by May 20.
Sen. Elizabeth Warren (D-MA) urged Meta this week to clarify its plans regarding the stablecoin, saying that the tech giant should reveal plans before voting on a major crypto-related bill pending in the Senate.
“It is important that Congress fully understand what Meta’s stablecoin integration Plans will govern the rules for creating a cryptocurrency market,” Warren said. letter was sent to Meta founder Mark Zuckerberg this week.
Warren is the top Democrat on the powerful Senate Banking Committee, which, after a delay of several months, may soon vote on Clarity Act-a bill that would legalize many crypto-related activities in the United States.
Meta, which includes Instagram, WhatsApp, Facebook, and Messenger, he rolled over program last month to pay producers in USDC, a stablecoin US dollar exchange rate for each year. Release followed in February CoinDesk The report reveals the company’s plan to integrate a third-party stablecoin for in-app payments across platforms in the second half of this year.
Following the launch of its USDC producer payment program, Meta emphasized no issuing its own stablecoin.
Meta previously tried to release its stablecoin, Libra, in 2019, but to be abandoned an effort after Congress pushed back on the idea of such a large agency creating its own private funds.
However, after last year’s episode of GENIUS Act-a bill to allow the issuance of stablecoins in the United States-Meta has also begun to review the financial capabilities.
“The lack of transparency about plans for Meta’s stablecoin is extremely problematic,” Warren criticized Zuckerberg in a letter on Wednesday.
The ambassador argued that, given Meta’s 3.5 billion users worldwide, any decision by a company to favor one stablecoin over another “would have a serious impact on competition, privacy, the integrity of our payment system, and financial stability.”
Last year, Warren and another senator, Richard Blumenthal (D-CT), asked Meta to reveal whether or not they wanted to adopt stablecoins. The head of the company only replied that “we currently have no plans to offer a stablecoin in the future” – but did not elaborate on possible arrangements with third parties.
Warren has now asked the tech giant to let him know, by May 20, about how they are experimenting with third-party stablecoin providers. He also asked Meta to explain in detail whether it wants to choose stablecoin over other payment methods, which methods will establish privacy for the money, and the financial arrangement between the company and the stablecoin provider, among other questions.
Daily Debrief A letter
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