TL;DR
- Meta is reportedly preparing to revive its plans for a private stablecoin, taking advantage of a legal gap in the recently passed GENIUS Act.
- Critical senators argue that the move could centralize even more financial power within a single tech company.
- Still, Meta’s renewed interest in digital assets represents a major step toward broader adoption of crypto solutions at scale.
Meta, the tech giant behind Facebook, Instagram, and WhatsApp, has once again attracted the attention of the U.S. Congress due to its renewed interest in launching a private stablecoin. This initiative is based on a legal loophole found in the recently passed GENIUS Act, which opens the door for tech companies to issue digital assets without strict regulation. The proposal has sparked a fresh wave of criticism from the Senate, particularly from Elizabeth Warren and Richard Blumenthal.
The senators sent a letter to Meta CEO Mark Zuckerberg requesting clarification about the company’s stablecoin plans. They also raised suspicions that Meta may have influenced the drafting of the GENIUS Act, which was approved by a 68-30 majority in the upper chamber. They fear that this move could allow the company to issue a dollar-linked token without real oversight, potentially harming competition and financial privacy.
Political Concerns Over Potential Conflicts of Interest
In a parallel line of questioning, Senators Warren and Jeff Merkley also expressed alarm over the launch of a stablecoin linked to World Liberty Financial (WLFI), an organization that, according to public records, has financial ties to members of the Trump family. They argue that such a connection could represent an unprecedented conflict of interest if a sitting president benefits financially from a digital asset promoted during their administration.
The senators’ letter also requested access to investment records from MGX, a firm based in the United Arab Emirates, and demanded the preservation of communications between senior officials from Binance, MGX, the White House, and specific members of Trump’s inner circle.
Contrasts With the Failed Libra Project and New Fintech Alliances
Meta had previously attempted to enter the crypto world in 2019 with its failed Libra project, which collapsed under international pressure. However, this new effort takes a different approach: the company has hired Ginger Baker, a former fintech executive and former member of a crypto organization, to lead the strategy. Her inclusion suggests that Meta is planning a rollout more in line with the regulatory environment, even if gaps still remain.
Meta’s potential to integrate digital asset payments into its massive platforms could bring cryptocurrencies closer to billions of users.
