Meta stablecoin Diem becomes the focus of controversy in the GENIUS Act, Democrat Warren: Zuckerberg kicks the Communist Party

The U.S. Senate will vote on the Stablecoin Bill 《GENIUS Act》 on 6/11 Eastern Time. On the eve of the vote, two Democratic members jointly sent a letter to Meta CEO Mark Zuckerberg, questioning Meta's plan to launch another stablecoin.

《GENIUS Act》 to be Voted, Meta Embroiled in Stablecoin Controversy Again

The Meta stablecoin controversy arose on the eve of the 《GENIUS Act》 vote (6/11), with two Democratic members, Elizabeth Warren and Richard Blumenthal, sending a letter to Meta and raising questions, demanding Zuckerberg clarify whether Meta has discussed stablecoin plans with any company this year and whether it will affect the legislative process of the 《GENIUS Act》. Warren emphasized:

"At this critical legislative moment, Congress and the American people have the right to understand Meta's thoughts on stablecoins."

Libra/Diem Once Politically Blocked, Democrats Worry Meta Will Monopolize Market with Stablecoin

The letter also specifically mentioned Meta's previous digital currency project, the Libra stablecoin launched by Facebook in 2019, which was later renamed Diem, and ultimately discontinued due to strong opposition from the U.S. Congress and regulatory agencies.

This has made Democratic members worry about history repeating itself, and they suspect that Donald Trump might use the 《GENIUS Act》 to grant Meta an exemption, allowing Meta to bypass regulatory oversight.

Warren and Blumenthal further warned in the letter that if Meta is allowed to bypass regulatory control of its stablecoin, it would definitely create more issues of user data leakage and market monopoly.

(Meta Blockchain Project Head: Diem's Failure is a Political Issue, Revealing Massive Political and Banking Interests)

Another Stablecoin? Meta Clarifies: No Current Plans

There are rumors that Meta is evaluating integrating stablecoin payments into its platforms, such as Facebook, Instagram, Threads, Messenger, and WhatsApp. Regarding this, Meta PR head Andy Stone clearly stated on 5/8 on X (Twitter):

"As Zuckerberg said, Diem is dead. Meta has no plans to issue any stablecoin."

It is currently unclear whether Meta intends to use mainstream stablecoins (USDT, USDC) or will launch another stablecoin, which makes regulators and Democratic members more concerned about its future plans, especially under the background of potential exemptions from the Trump administration.

As U.S. crypto regulatory bills accelerate, the second-largest commercial bank in the United States, Bank of America (BoA), recently confirmed that it is developing its own U.S. dollar stablecoin. With financial giants entering the arena, stablecoins and payment startups face competition from traditional finance, potentially bringing a major transformation to the global financial landscape.

(Bank of America CEO Sees Potential in Stablecoin Business: International Trade and Cross-Border Payments in Focus)

Although Moynihan admits that current market demand for such products remains unclear, he emphasizes: "We must be prepared."

This stablecoin plan will only be further advanced and made public if the U.S. government can establish a clear regulatory framework.

This reflects that even large financial institutions, while not rushing forward, have already initiated long-term layouts in cryptocurrency infrastructure.

Regulatory Boost: GENIUS Act May Become the Biggest Catalyst

Bank of America's stance coincides with the progress of the GENIUS Act (Stablecoin National Innovation Guidance Act) being promoted in Congress.

The bill passed the motion to end discussion with 68 votes to 30, entering the final voting procedure. If passed, the GENIUS Act will establish a unified regulation for "Payment Stablecoins", including 1:1 reserve guarantee, operational and reserve fund isolation.

(Understanding the U.S. GENIUS Act: Comprehensive Regulation of Payment Stablecoins)

If the Senate successfully passes the amendment, the House of Representatives is expected to directly vote on this version, accelerating the legislative process, which will provide a clear and compliant path for banks, including Bank of America, to implement stablecoins.

Europe Takes the Lead: Societe Generale Launches Second Stablecoin

Meanwhile, Societe Generale's digital asset subsidiary SG-FORGE recently launched its second stablecoin product "EUR CoinVertible (USD)" as an extension of the euro version, deployed on Ethereum and also circulating on Solana.

As a stablecoin fully operating under the EU Crypto Market Act (MiCA) framework, SG-FORGE's CEO stated: "Enterprise users' demand for 24-hour settlement has dramatically increased, making USD stablecoins the next logical step."

(Societe Generale Launches USD-Pegged Stablecoin! European Traditional Bank Enters New Blockchain Battlefield)

The product is expected to launch in July, supporting round-the-clock conversion between USD, euro, and stablecoins.

New Stablecoin Landscape: Traditional Finance Enters the Competition

In the past year, stablecoins were primarily led by startups or crypto-native teams, from Circle to Tether, but the situation is gradually changing. Bank of America's entry symbolizes that traditional finance is no longer just observing, but actively joining the competition.

(Traditional Finance's Integration of Blockchain Dims Crypto: What Remains After Cypherpunk Moves to the Margins?)

Additionally, there were rumors that Bank of America might collaborate with JPMorgan to issue a coin, but no concrete collaborative results have emerged yet.

With the GENIUS Act likely to accelerate implementation and synchronized progress in the U.S. and Europe, stablecoins are becoming a strategic high ground in the new global financial order.