Meta's Stablecoin Comeback Sparks Political Pushback as GENIUS Act Stalls

Meta Platforms (NASDAQ: META) is reportedly exploring a return to the stablecoin market, reigniting concerns among U.S. lawmakers. Senator Elizabeth Warren has voiced strong opposition, urging that the pending GENIUS Act be revised to explicitly block Big Tech firms like Meta from issuing or affiliating with stablecoins.

The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, initially saw bipartisan momentum. However, recent Democratic resistance has paused its progress in the Senate. Warren warned that the bill must prevent tech giants from gaining control over financial infrastructure, saying, "No Senator should vote to make it easier for Big Tech to pry into our financial transactions or choke off small businesses and political adversaries from the payments system."

Meta’s prior attempt to launch the Libra (later Diem) stablecoin collapsed under regulatory pressure. While Meta insists it has exited the stablecoin business—communications head Andy Stone wrote on X that "Diem is dead"—Warren remains skeptical. She accused CEO Mark Zuckerberg of potentially seeking new avenues to "control the American people’s money."

The GENIUS Act remains in negotiation, with lawmakers aiming for a renewed push as early as next week. Meanwhile, Warren has also escalated scrutiny on Binance, co-signing a letter with four Democratic senators to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. They raised alarm over Binance’s ties to World Liberty Financial, a crypto firm linked to the Trump family, questioning whether U.S. legal oversight is weakening.

With Binance under independent monitoring after a 2023 settlement involving money laundering and sanctions violations, the senators warned that loosening enforcement could empower bad actors. Binance has not yet responded to the inquiry.