Meta Considers Tokens as Senator Warren Urges Ban on Big Tech Stablecoins

Tech giant Meta is reportedly reconsidering its potential re-entry into the stablecoin landscape after facing significant regulatory challenges in the past. U.S. Senator Elizabeth Warren emphasized to CoinDesk that forthcoming laws governing stablecoins should assert that such attempts should be impossible.

Recently, a substantial cryptocurrency proposal aimed at establishing U.S. regulations for stablecoins like Tether’s USDT and Circle’s USDC was progressing smoothly through the Senate. However, a setback occurred when Democrats, including some who initially supported the initiative in committee, rallied against it, effectively stalling its advancement on the Senate floor. Senator Warren noted that modifications to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act are essential to restrict large corporations from creating their own currencies.

Warren stated, “The Senate needs to amend the GENIUS Act to prohibit major tech firms and other commercial entities from owning or being connected with stablecoin firms.” She stressed that no Senator should support measures that facilitate big tech’s intrusion into financial affairs or potentially harm small businesses and political opponents’ access to payment systems.

Six years ago, Meta attempted to introduce its crypto stablecoin, initially branded as Libra and later renamed Diem, but the plan collapsed due to intense backlash from regulators and lawmakers. She accused Meta’s CEO Mark Zuckerberg of trying to reintegrate into this space and demanded he clarify whether this signals another bid to dominate the financial resources of Americans.

Meta has yet to comment on Senator Warren’s statements.

The GENIUS Act is currently under negotiation again, and some Congress members remain optimistic about its reintroduction to the Senate floor potentially as soon as next week. A version of the bill is also making its way through the House of Representatives.

In addition to her focus on stablecoin regulation, Senator Warren, who serves as the senior Democrat on the Senate Banking Committee, has also been scrutinizing the interactions between the Treasury and Binance. Recently, she and several colleagues questioned Treasury Secretary Scott Bessent and Attorney General Pam Bondi about the exchange’s efforts to address U.S. legal obligations following a 2023 settlement.

Five Democratic senators, including Richard Blumenthal and Chris Van Hollen, sent a letter to officials regarding Binance’s discussions with the government while the exchange is enhancing its business relationship with World Liberty Financial, a crypto firm associated with Donald Trump and his family.

The senators expressed their concern over the U.S. administration reducing scrutiny in a sector where many actors have breached money laundering and sanctions laws, stating that it is unsurprising for Binance, which previously admitted to placing its growth and profits above regulatory compliance, to seek a relaxation of the oversight dictated by its settlement.

“Our worries regarding Binance’s adherence to compliance have intensified, especially with recent insights suggesting that the company is collaborating with foreign investment entities using the Trump family’s stablecoin,” the senators noted.

Binance representatives did not respond immediately to requests for comment.