Several U.S. lawmakers are ramping up their scrutiny of Meta’s potential return to the stablecoin market. Senators Elizabeth Warren and Richard Blumenthal have formally launched a Meta stablecoin investigation, demanding answers from Meta CEO Mark Zuckerberg on whether the tech giant is planning to release a new digital currency.
Senators Raise Red Flags Over Meta’s Stablecoin Strategy
In a letter sent to Meta on June 11, 2025, the senators expressed serious concerns about the company’s financial ambitions. The Meta stablecoin investigation focuses on possible privacy violations, regulatory evasion, and the potential for Meta to dominate digital payments across platforms like Facebook, Instagram, and WhatsApp.
According to the letter, the senators are particularly worried that Meta could use financial data from stablecoin transactions to target ads or sell user data. This raises alarm bells in Washington about consumer protection and data misuse.
Revival of Diem or New Stablecoin Strategy?
Although Meta shelved its earlier Libra (later Diem) project due to regulatory backlash, recent developments suggest the tech firm may be considering a stablecoin comeback. The Meta stablecoin investigation seeks to clarify whether Meta is working on a new in-house token or plans to integrate third-party stablecoins like USDC or USDT.
Recent reports hint at a possible “token-agnostic” approach, where Meta supports existing stablecoins rather than issuing its own. However, the senators are demanding a definitive answer from Meta before June 17, 2025.
Lawmakers Target the GENIUS Act as a Regulatory Loophole
The ongoing Meta stablecoin investigation coincides with debates over the GENIUS Act, a bill that would regulate payment stablecoins. Critics, including Senator Warren, argue the bill could leave room for Big Tech companies to issue stablecoins with minimal oversight.
Warren warns that unless amended, the bill could enable corporations like Meta to dominate financial infrastructure, threatening competition and user privacy. The letter questions whether Meta lobbied for provisions in the bill that would benefit its financial ambitions.
Key Questions Meta Must Answer
As part of the Meta stablecoin investigation, U.S. lawmakers are pressing Meta on seven specific points:
- Has Meta collaborated with any stablecoin-related firms in 2025?
- Is Meta lobbying for or against the GENIUS Act?
- Will Meta issue its own stablecoin or use third-party ones?
- How will Meta handle user transaction data?
- Will users be exposed to targeted ads based on financial behavior?
These questions aim to determine whether Meta’s intentions pose a threat to fair competition and consumer rights.
A New Era of Crypto Oversight for Big Tech
The Meta stablecoin investigation signals a shift in Washington’s approach toward Big Tech in crypto. While Meta’s ambitions are not illegal, regulators are keen on ensuring transparency and legal safeguards before allowing another major player into the digital currency space.
As the GENIUS Act moves through the Senate, the outcome of this probe could shape the legal landscape for stablecoins in the U.S. for years to come.
