Meta is reassessing its position in the stubcoin space after the first crypto venture Libra was later rebranded as Diem.
The new momentum around Stablecoins has rekindled concerns among US lawmakers, particularly Sen. Elizabeth Warren, who is calling for large engineers like Meta to stop issuing their own digital currency.
Andy Stone, Meta’s communications director, publicly denied these claims, saying, “Diem is dead. There is no metastab coin.” Still, insiders suggest that informal debates are ongoing behind closed doors.
Diem has failed in the aftermath of regulatory, legislative and financial watchdog rebound, but it appears that Meta is quietly finding new ways to get into the Stablecoin market. There was no official word for this development. Still, speculation is growing that the company will begin rolling out Stablecoins to optimize creator payments and drive international transactions.
Senator Warren demands stricter genius acts and blocks big engineers from controlling the stupid
Senator Elizabeth Warren is warning against the Genius Act (guiding and establishing national innovation for the US Stablecoins Act).
Warren argues that the Senate must intensify his genius behavior and make it clear that large technology and other large commercial companies should not be allowed to own or control stable ones.
Before the Genius Bill was defeated, he said, “If I can reach a compromise solution on these issues today, I will vote for the bill, otherwise I will fight it.”
Her concerns are clear. If a large tech company is financially managing its digital currency system, it can be used to unlock user transactions, season digital payments, and perhaps boost competitors and opponents.
Working on Meta’s involvement, Warren explicitly questioned Meta’s CEO Mark Zuckerberg, asking if his company was planning to quietly regain its plans to deploy stablecoin.
Warren said Zuckerberg owes Congress and explains whether this is another ploy to indirectly using American money to support the market.
For Warren, the outlook for a tech company overseeing meta or digital currencies threatens not only the business of financial but also the idea of democracy. She fears that by shaking political, commercial and civil liberties at a great rate, these companies could be placed on steroids.
Lawmakers block stubcoin law when Meta tries to revival
On Thursday, Democrats stopped the Senate from considering the Genius Act. This created a regulatory framework for payment stability.
The bill was voted 48-49, and was less than the 60 votes needed to get closer to final passage. The vote was split almost entirely along the party line after bipartisan support for legislation collapsed last week.
Initially, it was expected to ensure prompt approval of another must-see measure, but the bill faced opposition from some Democrat senators. They said there were still concerns about provisions on anti-money laundering, national security and other minority issues and were unable to support the current version of the bill.
Warren and her allies argue that the bill will allow corporate interests to be able to manage financial transactions without stronger safeguards. Genius acts are now getting one or two looks on some phones to fix it.
Sen. Ruben Gallego (Arizona), a top Democrat on the Senate Banking Subcommittee for Digital Assets, had requested that the vote be delayed until Monday to give the senators more time. However, his request was rejected and Democrats voted for the bill.
At the heart of the debate is whether companies like Meta should be allowed to re-enter the stubcoin space, a prospect that many lawmakers, including Warren, see as serious risks to financial stability and democratic surveillance.
The genius is now back in negotiations, with some lawmakers hoping it could reappear on the Senate floor as early as next week.
