“The GENIUS Act Could Revive Meta’s Stablecoin Dreams—But At What Cost?”**
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Once left for dead after regulatory backlash buried its Diem project, **Meta’s stablecoin ambitions may be getting a second life**—thanks to the recently proposed **GENIUS Act**.
Short for *“Government-Enabled Neutral Infrastructure for the U.S. Dollar”*, the GENIUS Act lays out a policy framework that **encourages the development of privately issued, dollar-backed stablecoins**, provided they meet strict transparency, reserve, and compliance standards.
And now, tech giants like Meta are eyeing the opportunity. **Could the social media titan reenter the stablecoin race under this new legal cover?**
> “GENIUS gives companies like Meta a regulated lane to rejoin the digital dollar conversation—without threatening monetary sovereignty,” one analyst said.
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### 🔍 What GENIUS Changes:
* ✅ **Clear Federal Licensing Path** for stablecoin issuers through the U.S. Treasury or OCC.
* 💸 **100% Reserve Backing** required—no algorithmic or fractional-reserve models allowed.
* 🧾 **Real-Time Auditing** and reporting obligations.
* 🛡️ **Consumer Protections** built into the issuance and redemption processes.
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### 👁️ Why Meta Might Reboot Its Stablecoin:
Meta, which previously abandoned its **Diem (formerly Libra) project** amid global regulatory pressure, has the infrastructure, wallet tech (Novi), and user base (WhatsApp, Facebook, Instagram) to distribute a stablecoin at scale—**if legally permitted**.
But critics are already raising concerns.
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### 🚧 The Roadblocks:
* 🏦 **Privacy Risks & Market Power:** A Meta-backed stablecoin would consolidate immense financial and data control under one company.
* 🌐 **Global Pushback:** Other governments may still oppose a tech-driven global currency, even if the U.S. green-lights it.
* 🔄 **Interoperability:** Meta would need to prove its coin could work within broader DeFi and TradFi ecosystems—not just its own walled garden.