Mega-cap technology companies such as Meta Platforms (META) are reportedly considering launching their own stablecoins as they look to actively participate in the cryptocurrency market.
The possibility of tech giants such as Meta expanding their reach into crypto has raised concerns in Washington, D.C., where legislation related to stablecoins is before the Senate.
U.S. Senator Elizabeth Warren is now calling for that stablecoin legislation to ban big tech firms from entering the crypto sphere.
The “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act aims to set U.S. rules for stablecoins such as Tether's USDT and Circle's USDC.
Stablecoins are cryptocurrencies whose value is tied to an underlying asset, typically the U.S. dollar or price of gold.
Democrats, including Ms. Warren, have halted the bill's progress in the Senate, demanding changes to prevent large corporations from issuing their own stablecoins and other crypto.
However, this is not the first time that big tech companies have showed interest in crypto.
Six years ago, Meta Platforms sought to launch its own stablecoin called “Diem” and nearly succeeded before an uproar from lawmakers and regulators ended the project.
But now, the administration of U.S. President Donald Trump is taking a more relaxed approach to cryptocurrencies and the regulations around them.
President Trump himself has issued his own crypto meme coins in recent months.
Many U.S. lawmakers say they remain hopeful that the stablecoin legislation will be passed into law during this session of Congress.
The stock of Meta Platforms has declined 1% this year to trade at $592.49 U.S. per share.
