Democratic senators Warren and Blumenthal push back against Meta’s renewed stablecoin ambitions

Democratic Senators Elizabeth Warren and Richard Blumenthal probed Meta CEO Mark Zuckerberg on what they described as "troubling reports" that the Facebook parent may be renewing its stablecoin plans."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 to monopolistic platforms that have a history of abusing their power," the senators wrote in a letter to Zuckerberg on Wednesday. "Given these significant concerns, and Meta's previous failed attempt at launching a stablecoin, we request information about Meta's plans and deliberations on once again pursuing a stablecoin venture."Meta is reportedly in talks with crypto firms about integrating stablecoins for payments, including small payouts on Instagram to reduce costs compared to fiat currency. The reports follow Meta's recent hire of former Ripple executive Ginger Baker to lead its stablecoin efforts. Ripple launched the RLUSD stablecoin in December. It remains unclear at this stage whether Meta will partner with an existing issuer or launch its own stablecoin. Nevertheless, Meta's pursuit of a stablecoin project raises "serious concerns," Warren and Blumenthal said.The senators argued that if Meta controlled its own stablecoin, it could exploit vast amounts of consumer financial data to fuel invasive advertising, manipulate pricing, or sell information to third parties. With 3.5 billion daily users, Meta could also distort competition by steering users toward its own services and excluding rivals, they said. Warren and Blumenthal argued that stablecoins themselves carry systemic risk, citing the brief depegging of USDC in 2023, which raises concerns about potential taxpayer bailouts. Given Meta's history of privacy violations, compliance issues, and failures to protect users, the senators warned that allowing it to run a private currency could pose serious money laundering, consumer protection, and national security threats.Specifically, they asked Zuckerberg to provide detailed information from Meta about its current stablecoin ambitions, including which companies it has consulted since January 2025, whether it plans to launch or partner on a stablecoin, and which of its platforms might support such payments. They also asked if Meta has lobbied on crypto legislation like the GENIUS Act or STABLE Act and whether it has engaged on provisions that could allow it to bypass restrictions. Additionally, the lawmakers want to know how Meta's new plans differ from its previous Libra and Diem efforts and what steps it has taken to address past regulatory concerns. Answers are requested by June 17.Facebook's doomed Libra stablecoin projectFacebook's Libra project, launched in 2019, previously attempted to create a global stablecoin backed by a basket of fiat currencies and governed by the Libra Association — a consortium of major firms including Visa, Mastercard, PayPal, Stripe, Uber, and Spotify. Spearheaded by David Marcus — now CEO of Bitcoin Lightning Network infrastructure firm Lightspark — Libra aimed to bring low-cost, borderless payments to billions, particularly the unbanked. However, it quickly drew intense regulatory backlash over fears of monetary disruption, data privacy, and corporate overreach. Key founding members exited, and by 2020, the project rebranded as Diem and scaled down its ambitions. Despite these efforts, Diem ultimately shut down in 2022 after failing to gain regulatory approval in the U.S., and its intellectual property was sold off to Silvergate Bank, which later went into bankruptcy. However, the project lives on in new-generation blockchains like Aptos and Sui, which are built using Diem's bespoke MOVE programming language without Meta's involvement.Now, under the pro-crypto second Trump administration, the regulatory climate appears markedly more receptive to digital assets, especially stablecoins, with Treasury Secretary Scott Bessent stating at a Senate hearing on Wednesday that the U.S. dollar stablecoin market, backed by U.S. treasuries or T-bills, could surpass $2 trillion in the next three years, provided there is legislative support. Earlier in the day, the U.S. Senate voted to move forward with the GENIUS Act stablecoin bill, pushing it closer to a final vote."[The GENIUS Act] would allow Big Tech companies like Meta to issue their own stablecoins — making it more critical than ever that Congress and the public fully understand the extent of Meta's plans," Warren and Blumenthal said in the letter.As a result, not just Meta, but a slew of Big Tech firms, including Apple, X, Airbnb, Google, and Uber, are once again exploring stablecoin adoption, while Stripe, Visa, and Mastercard are at more advanced stages in integrating the technology.Although its stablecoin ambitions may only now be resurfacing again, Meta has maintained its interest in the crypto industry during the intervening years. The firm submitted trademark applications in 2022 and 2023 for digital asset-related projects, such as crypto trading, blockchain-focused hardware, and digital asset exchange services.The Block reached out to Meta for comment.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.