U.S. Senator Warren and others sent a letter to Meta requesting an explanation of its stablecoin plans.

Gate News bot message: U.S. Senate Democrats Elizabeth Warren and Richard Blumenthal sent a letter requesting Meta to explain its stablecoin plans.

Lawmakers are demanding that the company provide details on its stablecoin plans and have pointed out previous reports regarding Meta’s involvement in fraud, “suspected anti-competitive behavior,” and privacy issues. According to a report by Fortune magazine last month, Meta is considering using stablecoins for payments.

The letter stated: “If Meta controls its own stablecoin, the company may further pry into consumers’ transactions and business activities. The massive consumer data it acquires could help Meta implement surveillance pricing schemes on its platform, deploy more intrusive targeted advertising, or profit by selling sensitive private information to third-party data brokers.”

This letter contains a series of questions, including whether Meta is considering launching its own stablecoin, whether Meta or its affiliated entities have lobbied for stablecoin legislation in the Senate or House, or provided feedback on that legislation in any other way. The letter also inquires whether Meta would oppose an amendment that prohibits large tech companies from establishing affiliations with or holding shares in stablecoin issuers.

The letter also asks the company to explain how its new stablecoin plan differs from the now-defunct Libra (later Diem) project led by Meta in 2019.

Source: CoinDesk