Warren and Blumenthal Press Meta Over Potential Stablecoin Push

U.S. Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) are sounding the alarm over Meta’s renewed interest in stablecoin technology, calling it a potential threat to economic competition, user privacy, and the integrity of the U.S. financial system.

In a June 12 letter addressed to Meta CEO Mark Zuckerberg, the senators questioned the company’s reported discussions with crypto firms about integrating stablecoin payments into Instagram, Facebook, and WhatsApp. Their concerns come after Fortune revealed Meta may be seeking a fresh entry into digital currency after the collapse of its previous effort—Libra, later rebranded as Diem—which disbanded in 2022 under intense regulatory pressure.

“Tech giants like Meta wield enormous economic power,” the senators wrote. “If allowed to issue or control private currencies such as stablecoins, they could sidestep regulatory frameworks, deepen monopolistic control, and pose serious risks to consumer privacy.”

With Meta’s platforms reaching an estimated 3.5 billion users globally, Warren and Blumenthal argue the company could gain outsized influence over digital payments—potentially undermining financial competition and enabling invasive data practices. They pointed to Meta’s history of controversial data use as a red flag, raising concerns that a company-issued stablecoin could enable deeper surveillance and targeted advertising practices.

Stablecoins—digital assets pegged to fiat currencies like the U.S. dollar—are typically seen as a way to enable faster, lower-cost transactions. But lawmakers warn that under Meta’s control, they could also be used to track consumer spending behavior or monetize user data through third-party brokers.

The senators requested detailed information from Zuckerberg, including the names of crypto firms Meta has consulted, whether the company is considering launching its own token, and how it plans to address potential risks. The deadline for a response is set for June 17.

This scrutiny marks a significant political hurdle for Meta’s crypto ambitions, underscoring the lingering skepticism in Washington toward Big Tech’s involvement in the financial sector.