Sen. Elizabeth Warren (D-MA) is pressing Meta Platforms Inc. (NASDAQ:META) for more details about its stablecoin creator payment plans, raising concerns about potential risks.
“The lack of transparency regarding the details of Meta’s stablecoin-related plans is deeply troubling,” Warren said in a letter to Meta CEO Mark Zuckerberg dated May 6, warning the plans “could have serious implications for competition, privacy, the integrity of our payments system, and financial stability.”
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Warren, the ranking member of the Senate Banking Committee, said Congress must understand Meta’s plans as it considers cryptocurrency market structure legislation. The Clarity Act bill is scheduled for a vote by the committee soon.
Warren asked Meta about privacy guardrails, illicit finance controls and whether there is any profit-sharing agreement with the third-party stablecoin issuer.
Warren also asked if Meta has decided on a stablecoin.
However, Meta last month said it now supports Circle Internet Group’s (NYSE:CRCL) USDC stablecoin for creator payments in Colombia and the Philippines. The service requires creators to use third-party wallets, with Meta suggesting popular options such as MetaMask and Phantom.
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Warren and Sen. Richard Blumenthal (D-CT) in a 2025 letter to Zuckerberg over reported Meta stablecoin plans warned about the volatility of stablecoins, citing a 2023 USDC depegging event following the collapse of Silicon Valley Bank, which held some of the token’s reserves.
Meta’s cryptocurrency moves have been subject to intense scrutiny since its attempt to launch the Libra token project. The project announced in 2019 was shut down in 2022 amid significant regulatory pushback. The token would have allowed Meta to exploit user transaction data for its advertising business, Warren said in her letter last week.
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