Meta’s Re-Entry Into Crypto Receives Stark Criticism From Congress

• Congresswoman Maxine Waters wrote a letter to Meta executives concerning their re-entry into the crypto space.
• The letter highlighted the firm’s five trademark applications regarding crypto services and blockchain technology.
• Considering Meta’s previous troubles in the space, Waters asked for more clarity regarding their intention.

In a recent letter addressed to the technology conglomerate Meta’s CEO Mark Zuckerberg and COO Javier Olivan, Congresswoman Maxine Waters questioned the company’s intention regarding its potential re-entry into the crypto space.

The letter highlighted the giant’s five trademark applications submitted to the United States Patent and Trademark Office (USPTO), concerning blockchain technology and crypto services.

The Congresswoman’s concerns connect with Meta’s previous abandonment of its plans to establish crypto services in 2022. In mid-2019, considering regulatory opposition, the company left its plan to launch the crypto-based payment platform Diem (Libra). Later in 2022, Meta sold Diem to Silvergate Capital Corp. for $200 million, stepping back from the crypto space.

Over the past year, Meta has submitted five trademark applications, revealing the firm’s vision of expanding its involvement in the crypto realm. However, ambiguities arise when this contradicts a Meta spokesperson’s statement. Waters stated,

Despite these trademark applications, which indicate there are specific goods and services connected with digital asset work that Meta is doing, Meta staff asserted on October 12, 2023, in communications with Democratic Financial Services Committee (Committee) staff that there is no ongoing digital assets work at Meta.

MartyParty, a prominent voice in the blockchain space, took to X to share insights on Water’s letter and its implications for Meta’s proposal.

Waters remains pessimistic about Meta’s re-entry into the crypto economy, especially considering its past. Waters’ clash with Meta’s involvement with crypto began in 2019 when the firm introduced its Libra proposal.

At the time, she stated, “With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion…  The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy.”

In the recent letter, Waters demanded that Meta provide clarity regarding the filings and their intention to step into the digital space. She also inquired whether the platform envisions launching a crypto payment platform, emphasizing the need for transparency.