US Senators Probe Stablecoin Plans by Facebook Parent Meta

Senators Elizabeth Warren (D-Mass.) And Richard Blumenthal (D-Conn.) Released a letter on Wednesday to Meta Meta Zuckerberg Executive Director, demanding answers on the renewed search for the payment of stabiorin.

“Large technological companies that issue or control their own private currencies, such as Stablecoin, would threaten to competition throughout the economy, disturbed financial privacy and gave control of the US cash supply monopolistic platforms that have the history of abuse of their power,” Senators, ” wrote in their letter.

With 3.5 billion daily Meta users, Warren and Blumenthal warned that the company could strengthen significant economic power and undermine the competition.

The probe of democratic senators follow a Wealth report This target is in conversation with the crypto companies about integrating the trees into their platforms, including Instagram, Facebook and WhatsApp.

Meta’s research Stablecoins indicates an attempt to return after the failure of its 2019 scales project.

Initiative, later renamed Diem, demolished under intense regulatory supervision and a two -party political opposition before she eventually sold her property in 2022.

Unverified strength

The Senator Letter connects the links between the past failures of the meta and current risks, noticing the company “worrying records” of business.

The letter warned that if the meta controls its own stabblecoin, “the company could further move into consumer transactions and commercial activities.”

Stabilcoini are cryptocurrencies for the value of traditional property such as US dollars designed to offer prices stability, and are usually used to pay and transfers.

Senators stated that the target could use the huge amounts of consumer data “to encourage the schemes of the cost of surveillance on their platform, more intrusively targeted advertising, or otherwise helped by the company to have renovated sensitive private information through the sale of third parties.”

They gave Zuckerberg by June 17 to answer eight detailed questions about Stablecoin’s Meta plans, including what Tech Giant companies advise whether he is considering starting his own token.

Senators also want to know if the target has been lobbying for cryptocurrency and whether to opposes the amendments that prohibit the companies of “large technological” to control stable publishers.

The investigation comes at a critical moment while the Senate voted 68-30 on Wednesday to advance An ingenious actLegislation “that would expressly allow great technological companies such as the target to publish their stable paths,” the letter states.

“By passing the ingenious law, the Senate will not only bless this corruption, but also actively facilitate its spread,” ” Warren said On the floor of the Senate, referring to the links of President Donald Trump with his crypto platform World Liberty Financial.

Decipher He contacted the target for comment. Before that, the director of communication Andy Stone wrote on x In May that there was no meta stablecoin “in development.”

Edited Sebastian Sinclair