Warren probes Meta USDC pilot, cites financial risks

Sen. Elizabeth Warren asked Meta for documents and explanations about a pilot that lets creators receive payments in the USDC stablecoin. She warned the program could affect competition, consumer privacy, the U.S. payments system and financial stability.

The pilot, launched last week, allows a selected group of creators in Colombia and the Philippines to receive payments in USDC. Meta routes transactions on the Solana and Polygon blockchains and has said it is working with third-party stablecoins. The company has stated it is not issuing its own stablecoin and expects to offer the payment option in more than 160 countries by the end of 2026.

Warren requested information on the pilot’s scope, the technology and custody arrangements, and contingency plans for a loss of peg or other market stress. She also asked how the project will be governed and what measures are in place to protect users and the broader financial system.

The senator highlighted the 2023 episode when USDC briefly traded below $1 after the collapse of Silicon Valley Bank, at one point reaching about $0.88. She asked Meta to explain how it will manage similar strains and who would bear losses if a stablecoin experienced a sharp devaluation.

Warren asked Meta to explain how its plans fit with the CLARITY Act now being considered in Congress. Senate Banking Committee Chairman Tim Scott has signaled an intent to bring that bill to committee markup this month, increasing legislative attention on stablecoins and platform payments.

The pilot revives work Meta pursued in 2019 with Libra and Diem, projects that were abandoned after regulatory pushback. Warren has also pursued separate inquiries into tech employment practices and corporate behavior and has introduced or backed legislation aimed at undoing large mergers and increasing corporate accountability.

A Meta spokesperson reiterated that the company is not the issuer of the tokens used in the pilot and described the effort as expanding payment choices for creators and businesses. Warren asked for prompt responses and requested documentation supporting the company’s risk-management and user-protection plans.