geniusact

Bernstein reports that the GENIUS Act, if passed, could transform stablecoins into a key "money rail" for internet transactions, treating them as digital cash.
The bill aims to drive broader payment adoption but restricts non-financial companies (e.g., Amazon, Walmart) from issuing their own stablecoins, favoring regulated U.S. issuers.
This could push stablecoins toward mainstream use in 2025

#stablecoin #CryptoNews #Web3 #GENIUSAct
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Senators Warren and Blumenthal question Meta’s stablecoin plans.
GENIUS Act advances in Senate with 68-30 vote for debate.Meta’s past Libra/Diem projects faced global regulatory backlash.Concerns raised over Meta’s potential influence on GENIUS Act. Stablecoin market grows 90% to $249.3 billion in 2025. 
Senators Demand Clarity on Meta’s Stablecoin Strategy
U.S. Senators Elizabeth Warren and Richard Blumenthal sent a letter to Meta CEO Mark Zuckerberg on June 11, 2025, seeking details about the company’s potential stablecoin plans. The inquiry coincides with the Senate’s debate over the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill aimed at regulating digital currencies pegged to assets like the U.S. dollar.
The senators expressed alarm over Meta’s history with stablecoin projects, citing the failed Libra and Diem initiatives, which collapsed in 2022 due to global regulatory pushback. They warned that Meta’s renewed interest in digital currencies could threaten consumer privacy and market competition if not tightly regulated.
Lawmakers asked whether Meta influenced the GENIUS Act’s drafting and if it plans to issue its own stablecoin or partner with existing providers. They also questioned whether Meta would support amendments barring Big Tech from controlling stablecoin issuers.
GENIUS Act Sparks Heated Senate Debate
The GENIUS Act advanced in the Senate with a 68-30 vote on June 11, 2025, clearing a procedural hurdle to allow further debate and amendments. The legislation seeks to establish a federal framework for stablecoin issuers, requiring full backing by U.S. assets and licensing by regulators.
Critics, including Warren, argue the bill could enable tech giants like Meta to dominate digital finance. “A Meta-controlled stablecoin could deepen surveillance of consumer transactions,” the senators wrote, highlighting risks to financial privacy.
Supporters, led by Senate Majority Leader John Thune, claim the bill will bolster U.S. economic dominance by mainstreaming digital currencies. Thune emphasized that the legislation could position the U.S. as the “crypto capital of the world.”
Concerns also arose over potential exemptions for Meta under the GENIUS Act. The senators cautioned that President Donald Trump, whose family launched the World Liberty Financial stablecoin platform, might issue a waiver allowing Meta to bypass regulations. Such a move, they argued, could undermine oversight and favor corporate interests.
The bill’s progress follows a stalled attempt in May, when Democrats raised objections over insufficient safeguards against illicit finance and conflicts of interest tied to Trump’s crypto ventures. Recent bipartisan negotiations incorporated Democratic amendments, paving the way for the June vote.
Meta’s Past and Present Crypto Ventures
Meta’s earlier foray into stablecoins through Libra and Diem faced fierce opposition from regulators worldwide. The projects aimed to create a global digital currency but were abandoned after concerns over money laundering, financial stability, and data privacy.
Recent reports suggest Meta is exploring stablecoin payments across its platforms, including Facebook, Instagram, WhatsApp, and Messenger. The company has not confirmed these plans, and a Meta spokesperson declined to comment on the senators’ letter. In May, Meta’s communications director, Andy Stone, stated on X that no stablecoin was in development.
The senators’ inquiry also touched on Meta’s lobbying activities. They demanded transparency on whether Meta advocated for provisions in the GENIUS Act or engaged with lawmakers to shape crypto policy.
Broader Implications for Stablecoin Regulation
The GENIUS Act debate underscores tensions over Big Tech’s role in finance. Republican Senator Josh Hawley has opposed the bill, arguing it grants tech firms excessive power to issue digital currencies that could rival the dollar. Democrats are pushing an amendment to prohibit Big Tech from creating stablecoins, aiming to curb monopolistic risks.
Stablecoins, designed to maintain a stable value, have surged in popularity, with a market cap of $249.3 billion as of June 2025, up 90% since January 2024. Major players like Tether and Circle dominate, but corporate interest from firms like Apple and Google is growing.
The Senate’s next steps include reviewing over 120 proposed amendments, some addressing unrelated issues like credit card fees. A final vote is expected soon, with the bill potentially moving to the House for further consideration.

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