US Senate Demands Stop Facebook Crypto Wallet Launch

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Five Democratic senators, including the leadership of the banking committee, sent an open letter to Facebook CEO Mark Zuckerberg demanding that they stop the launch of the Novi cryptocurrency wallet and Diem stablecoin.

This morning, the company announced a “small pilot project” in the US and Guatemala with the help of stablecoin issuer Paxos. Facebook noted that it will not abandon previous plans and will add support for Diem after obtaining the necessary regulatory approvals.

The Senate has its own expectations in this regard:

“We urge you to immediately stop pilot testing Novi and promise that you will not bring Diem to market.”

Among others, Senators Elizabeth Warren and Sherrod Brown, known for negative comments about Bitcoin, signed the letter.

The senators noted that Facebook’s head of finance, David Marcus, had previously assured them that the company would not pursue the cryptocurrency initiative “without proper regulatory frameworks.” The legal framework for stablecoins is currently under discussion by financial regulators, they added.

A similar statement was issued by the Senate in 2019 after the announcement of the Libra stablecoin, calling for a moratorium on it. Subsequently, a number of hearings were devoted to this issue, and Facebook had to significantly change its original plans.

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