Senators slam Mehta’s stable key, citing privacy risks and regulatory vulnerabilities

Democratic Senators Elizabeth Warren and Richard Blumenthal posted a letter to Fungeon CEO Mark Zuckerberg, which attracted attention to the tech giant’s launch of Stablecoin again.

In the letter, the senator warned that Meta’s renewed interest in digital currencies, reminiscent of its failed Libra and Diem initiatives, could pose serious risks to financial privacy, economic competition and national monetary sovereignty.

Zuckerberg imposes stability strategies

Legislators quoted recent reports that Meta has been in discussions with cryptocurrency companies and has hired a fintech executive to lead its stabilization drive.

Senators expressed concern that meta-backed Stablecoin could monitor user transactions more deeply, threaten competition and expose consumers to systemic financial instability. They are similar to 2023 for USDC and subsequent federal supporters, warning that taxpayers may be forced to bear the consequences of a Meta-linked Stablecoin.

In addition to financial risks, the letter outlines the company’s history of privacy violations, antitrust investigations and failure to protect users, especially children, from harm, and believes such records make the company uniquely unsuitable for managing private monetary systems.

As Congress debates the Genius Act, the timing of the company’s revival of Stablecoin ambitions is also important, which could pave the way for large technologies to issue digital dollars through slightly regulated branches. Warren and Blumenthal questioned whether the Met is lobbying legislators to influence the bill’s language and sought clarification on whether the company is trying to exploit regulatory loopholes to gain control of a stable issuer.

Yuan faces the deadline for June 17

The letter also requests detailed disclosure by June 17, which includes consulting crypto companies, expected deployment platforms, and lobbying activities related to genius and stable behavior. Senators called on tech companies to explain how their current Stablecoin program differs from the Libra and Diem projects and what steps have been taken to address past issues.

Legislators explicitly object to the over-division they see as dangerous, demanding whether the amendment would support the amendment to explicitly issue or control Stablecoins by large tech companies.