Meta (META), the tech giant, has reportedly been exploring a potential reentry into the stablecoin sector, despite having previously triggered significant regulatory pushback in the U.S. due to earlier efforts. In response, U.S. Senator Elizabeth Warren stated that upcoming legislation aimed at regulating stablecoins must ensure such a return by big tech firms is prohibited.
A critical cryptocurrency bill designed to establish U.S. regulatory guidelines for stablecoins like Tether’s USDT and Circle’s USDC had been advancing smoothly through the Senate until its momentum was disrupted this week. Opposition emerged from several Democratic lawmakers—including some who had previously backed the measure in committee—bringing the bill’s progress to a standstill on the Senate floor. According to Senator Warren, revisions must be made to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to prohibit large corporations from issuing their own digital currencies.
In a statement, the Massachusetts Democrat asserted that the GENIUS Act must be amended by the Senate to bar Big Tech firms and other major commercial entities from owning or being affiliated with stablecoin issuers. She emphasized that no senator should support legislation that would enable Big Tech to intrude into individuals’ financial activities or to exclude small businesses and political opponents from access to the payments infrastructure.
Six years prior, an effort was made by Meta to introduce its own cryptocurrency stablecoin, originally named Libra and later rebranded as Diem, which advanced significantly before facing strong opposition from certain regulators and lawmakers that ultimately halted the initiative. Senator Warren claimed that Meta CEO Mark Zuckerberg—whose company contributed $1 million to President Donald Trump’s inaugural committee—is attempting to reenter the stablecoin space. She further called for Zuckerberg to appear before Congress to clarify whether this represents another effort to exert control over Americans’ financial systems.
When a response to Senator Warren’s remarks was requested, Meta referred to a statement made by communications director Andy Stone on the social platform X, where it was asserted that “Diem is ‘dead.’ There is no Meta stablecoin.”
The GENIUS Act has returned to the negotiation stage, and some lawmakers have expressed optimism that it may reemerge on the Senate floor as early as next week. A counterpart version of the legislation is also progressing through the legislative process in the House of Representatives.
Binance Under Treasury Scrutiny
Warren, serving as the senior Democrat on the Senate Banking Committee, has remained active in her oversight of the cryptocurrency industry. On Friday, she joined fellow lawmakers in raising questions to Treasury Secretary Scott Bessent and Attorney General Pam Bondi regarding their engagements with Binance, which has reportedly been attempting to navigate ongoing U.S. legal obligations following a settlement reached in 2023.
A letter was sent by five Democratic senators—including Richard Blumenthal, Chris Van Hollen, Mazie Hirono, and Sheldon Whitehouse—to federal officials, inquiring about discussions held between the U.S. government and the crypto exchange, Binance. The inquiry was prompted as Binance expands its business relationships with World Liberty Financial, a cryptocurrency firm reportedly linked to President Donald Trump and his family.
In the letter, it was stated that “as oversight is being relaxed by the administration over an industry where bad actors have breached money laundering and sanctions laws, it is unsurprising that Binance—having admitted to prioritizing growth and profits over compliance with U.S. law—would attempt to reduce the regulatory scrutiny imposed by its settlement.” The senators also highlighted that Binance remains under the supervision of independent monitors due to previous guilty pleas to numerous charges, including money laundering and violations of sanctions.
The senators stated that their concerns regarding Binance’s compliance responsibilities have become even more urgent in light of recent reports indicating that the company is utilizing the Trump family’s stablecoin to form partnerships with foreign investment firms.
No immediate response was provided by Binance spokespersons when a request for comment was made.
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