Two US senators, Elizabeth Warren and Richard Blumenthal, have asked Meta CEO Mark Zuckerberg to provide more details about the company’s plans to launch a stablecoin.
In a letter sent on June 11, the senators said that due to Meta’s size and reach, it is important for Congress and the public to understand what the company is planning.
They asked Zuckerberg to explain whether Meta had discussed stablecoins with other companies and if it had any influence on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act during its drafting.
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The senators expressed concern that Meta might receive a waiver under the GENIUS Act. If that happens, the company could avoid rules that would apply to other stablecoin issuers. According to the letter, this kind of exception might give Meta an unfair advantage and could set a troubling example.
Warren and Blumenthal also warned that if Meta creates and controls its own digital currency, it might be able to track purchases and other financial behavior across its platforms. They added:
The massive amounts of consumer data it would ingest could help Meta fuel surveillance pricing schemes on its platform, more intrusive targeted advertising.
Meanwhile, during a June 4 hearing of the House Financial Services Committee, Representative Maxine Waters expressed concerns about what she views as a gap in the Digital Asset Market Clarity (CLARITY) Act. What did she say? Read the full story.
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