Meta’s Stablecoin Diem Becomes Controversial Focus of the GENIUS Act, with Democrat Warren Accusing Zuckerberg of Neglect
US Senate to Vote on Stablecoin Bill “GENIUS Act” Amid Controversy
The US Senate will vote on the stablecoin bill “GENIUS Act” at 6/11 Eastern Time. On the eve of the vote, two Democratic senators sent a letter to Meta CEO Mark Zuckerberg, questioning Meta’s plan to reintroduce its own stablecoin.
GENIUS Act Set for Vote, Meta Caught in Stablecoin Controversy
The controversy surrounding Meta’s stablecoin emerged just before the vote on the “GENIUS Act” (6/11). Democratic senators Elizabeth Warren and Richard Blumenthal issued a letter to Meta, raising concerns and requesting Zuckerberg to clarify whether Meta has discussed any stablecoin plans with other companies this year, and whether this will affect the legislative process of the “GENIUS Act.” Warren emphasized:
“At this critical moment in legislation, Congress and the American people have a right to understand what Meta’s thoughts on stablecoins are.”
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The Libra/Diem project was previously politically suppressed, raising concerns among Democrats that Meta may monopolize the market through stablecoins. The letter specifically mentioned Meta’s earlier digital currency project, the Libra, which Facebook launched in 2019 and later rebranded as Diem. This project ultimately faced strong opposition from the US Congress and regulatory bodies, leading to its discontinuation.
This has raised fears among Democrats of history repeating itself, further questioning whether Donald Trump might grant Meta exemptions through the “GENIUS Act,” allowing Meta to bypass regulatory oversight. Warren and Blumenthal warned in their letter that if Meta were allowed to circumvent regulatory controls for its stablecoin, it would undoubtedly lead to more issues concerning user data breaches and market monopolization.
(Meta Blockchain Project Leader: Diem’s failure was a political issue rather than a regulatory one, exposing significant political and banking interests behind it.)
Will Another Stablecoin Be Launched? Meta Clarifies: No Current Plans
There are rumors that Meta is evaluating integrating stablecoin payments into its platforms, such as Facebook, Instagram, Threads, Messenger, and WhatsApp. In response, Meta’s PR head Andy Stone clearly stated on Twitter (X) on 5/8:
“As Zuckerberg has said, Diem is dead. Meta has no plans to issue any stablecoins.”
It remains unclear whether Meta intends to utilize mainstream stablecoins (USDT, USDC) or will again launch its stablecoin, raising further concerns among regulators and Democrats regarding its future plans, especially in the context of potential exemptions that could be offered by the Trump administration.
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