Senate members criticize Stablecoin Push, and states the risks of privacy and organizational gaps

Democratic Senator Elizabeth, Warren and Richard Blumenant issued a letter to Meta Mark Zuckerberg CEO, which raised concerns about reports that the technology giant once again explores its Stablecoin’s launch.

In the letter, members of the Senate warned that dead renewed interest in the digital currency, which it reminds of Libra initiatives and failed initiatives, may pose serious risks to financial privacy, economic competition and national monetary sovereignty.

Zuckerberg pressure on the stablecoin strategy

Quoting modern reports that Mita was in discussions with encryption companies and rented a FinTec executive to lead the Stablecoin batch, legislators Argue That any such step, whether through direct version or strategic partnership, will allow the company to tighten its grip on payments through its huge ecosystem of 3.5 billion users.

Senate members express his concern that the supported stablecoin can allow deep monitoring of user transactions, threatening competition, and exposing consumers to systematic financial instability. Drawing similarities with discrimination for the year 2023 of USDC and subsequent federal successors, warning that taxpayers may have to bear the consequences of running on stablecoin associated with dead.

In addition to the financial risks, the message also defined the company’s history of privacy violations, investigations in combating monopoly, failure to protect users, especially children, from harm, and argued that such a record makes the company uniquely decent to manage the private currency system.

The timing of Stablecoin’s ambition is also important, as Congress discusses a genius law, which can pave the way for a large technology to issue digital dollars through light subsidiaries. Warren and Diplomatic asks whether Meta is pressuring legislators to influence the language of the draft law and search for an explanation about whether the company is trying to exploit organizational gaps to obtain a controlling stake in Stablecoin source.

The death faces the deadline on June 17

The message also requires detailed disclosures by June 17, including a list of consultative encoding companies, intended publication platforms, and pressure activity related to genius and stable verbs. Senate members called on the technology company to explain how current Stablecoin plans differ from Libra and Diem projects and what steps have taken to address previous concerns.

In a clear reaction against what they see as a serious skipping, legislators ask whether he would support modifications to prevent major technology companies from issuing or controlling Stablecoins explicitly.