Senate Democrats Press Meta on Stablecoin Plans Amid Privacy Concerns

Senators Elizabeth Warren and Richard Blumenthal have called on Meta to disclose its intentions regarding stablecoins, raising fresh concerns over consumer privacy and financial surveillance. In a letter sent Wednesday, the lawmakers urged the tech giant to clarify whether it plans to launch its own stablecoin and questioned how such efforts might differ from its abandoned Libra (later Diem) project.

The letter cited recent reports that Meta may explore stablecoins for payments, warning that such a move could enable deeper access to consumer data. “If Meta controlled its own stablecoin, the company could further pry into consumers’ transactions and commercial activity,” the letter stated. It also expressed concern that the data collected could be used for “surveillance pricing,” hyper-targeted advertising, or even sold to third-party data brokers.

Warren and Blumenthal requested detailed answers on Meta’s lobbying activities related to the Senate and House stablecoin bills, including whether Meta has influenced any legislation. They also questioned whether Meta would oppose provisions aimed at blocking Big Tech firms from owning or affiliating with stablecoin issuers.

The inquiry comes on the same day the U.S. Senate is set to vote on the GENIUS Act, a bill focused on stablecoin regulation. While Senate Majority Leader John Thune has previously mentioned the potential for amendments, he recently indicated that the bill is likely to pass without changes. Arizona Senator Ruben Gallego predicted bipartisan support, with at least 16 Democrats expected to vote in favor.

Meta has yet to respond to the letter. The company's past attempts at launching a digital currency met with widespread resistance, and lawmakers remain wary of its renewed interest in the space.