Senator Elizabeth Warren (D-MA) sent a letter to Meta CEO Mark Zuckerberg urging the company to fully disclose its stablecoin-related plans. Warren argued that Congress needs to understand Meta's intentions before voting on the Clarity Act, a bill that would formally legalize most crypto activities in the United States. The Clarity Act is pending in the Senate Banking Committee, where Warren serves as the top Democrat. Meta recently launched a program to pay creators in USDC stablecoin and plans to integrate third-party stablecoins for in-app payments. This follows Meta's earlier abandoned Libra project after congressional pushback. The company emphasizes it is not issuing its own stablecoin. However, the passage of the GENIUS Act last year, which legalized stablecoin issuance in the U.S., has renewed Meta's interest in stablecoin technology. Warren warned that Meta's vast user base of 3.5 billion could allow its stablecoin preferences to impact competition, privacy, payment system integrity, and financial stability. She demanded details by May 20 on Meta's stablecoin experiments, partnerships, privacy safeguards, and financial arrangements with stablecoin issuers. This scrutiny comes as lawmakers consider the Clarity Act, which would establish a formal regulatory framework for cryptocurrencies.

Key facts

• Elizabeth Warren demands Meta disclose stablecoin plans before Senate votes on Clarity Act.
• Meta launched USDC creator payouts and plans third-party stablecoin integration.
• Warren warns Meta's 3.5 billion users could impact competition, privacy, and stability.
• Meta previously abandoned its own Libra stablecoin after congressional backlash.
• Warren sets May 20 deadline for Meta to detail stablecoin experiments and partnerships.

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