Meta is re-evaluating its position in the stablecoin space after its first crypto venture, Libra, later rebranded as Diem, was shelved in 2022 under intense regulatory pressure.
The renewed momentum around stablecoins has reignited concerns among U.S. lawmakers, particularly Senator Elizabeth Warren, who is pushing to keep Big Tech players like Meta from issuing their own digital currencies.
Meta’s communications director, Andy Stone, has publicly denied these claims, stating bluntly, “Diem is dead. There is no Meta stablecoin.” Still, insiders suggest informal discussions are ongoing behind closed doors.
Whilst Diem failed in the aftermath of regulatory, legislative, and financial watchdog backlash, Meta seems to quietly find new methods to gain entry to the stablecoin market. There has been no official word of this development. Still, speculation is growing that the company will begin to deploy stablecoins to optimize creator payments and facilitate international transactions.
Senator Warren demands tougher GENIUS Act to block Big Tech from controlling stablecoins
Senator Elizabeth Warren is sounding the alarm over the GENIUS Act — the Guiding and Establishing National Innovation for U.S. Stablecoins Act — demanding crucial changes to prevent Big Tech from entering the stablecoin market.
Warren argues that the Senate must strengthen the GENIUS Act and clarify that Big Tech and other large commercial firms should not be allowed to own or control stablecoins.
Before the GENIUS bill was defeated, she said, “If we can reach a compromise solution on these issues today, I will vote for the bill. If not, I will be fighting against it.”
Her concern is clear: If Big Tech companies have financial control over digital currency systems, they can use it to untangle user transactions, tinker with digital payments, and perhaps stamp out competitors and dissenters.
Addressing the involvement of Meta, Warren explicitly questioned Meta CEO Mark Zuckerberg, asking whether his company plans to quietly bring back what was once its plans to roll out its stablecoin.
Warren said that Zuckerberg owes it to Congress to explain whether this is another ploy to indirectly use the American people’s money to support the market.
For Warren, the prospect of Meta or any tech company overseeing a digital currency threatens not just the business of finance — but the very idea of democracy. She fears it could put these companies on steroids, with outsize sway over politics, commerce, and civil liberties.
Lawmakers block stablecoin legislation as Meta attempts revival
On Thursday, Democrats blocked the Senate from considering the GENIUS Act, which would create a regulatory framework for payment stablecoins.
The bill was voted down 48-49, falling short of the 60 votes required to bring it closer to final passage. The vote was split almost entirely along party lines after bipartisan support for the legislation fell apart last week.
Though initially expected to secure prompt approval of another must-do measure, the bill faced opposition from some Democratic senators. They said they still had concerns about provisions on anti-money laundering, national security, and a handful of other issues and could not support the bill’s current version.
Warren and her allies argue that the bill could allow corporate interests to control financial transactions without stronger safeguards. The GENIUS Act is getting a hard look or two now, with some calls to fix it.
Sen. Ruben Gallego (Ariz.), the top Democrat on the Senate Banking Subcommittee on Digital Assets, had initially asked to delay the vote until Monday to give senators more time. However, his request was rejected, and Democrats voted down the bill.
At the heart of the debate is whether companies like Meta should be allowed to re-enter the stablecoin space, a prospect that many lawmakers, including Warren, view as a serious risk to financial stability and democratic oversight.
The GENIUS Act is now back in negotiations, and some lawmakers remained hopeful it could reappear on the Senate floor as early as next week.
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