Scaling Meta’s Digital Assets: A Closer Look by Maxine Waters
Rep. Maxine Waters, Ranking Member of the U.S. House of Representatives’ Financial Services Committee, questioned Meta Platforms, Inc. (formerly Facebook) regarding a trademark application that represents a potential expansion of the digital asset ecosystem.
Waters’ concerns, communicated in a January 22, 2024 letter to Meta’s CEO Mark Zuckerberg and COO Javier Olivan, stemmed from five trademark applications filed by Meta on March 18, 2022. October 12, 2023 Despite Meta’s claims, the company has not engaged in digital asset operations, but it appears otherwise in these applications. The committee is pressing Meta for clarity on ongoing or planned blockchain or cryptocurrency-related projects.
Trademark applications cover a variety of services in the trading, cryptocurrency and blockchain fields. exchange, payments, transfers and related hardware and software infrastructure. A Notice of Acceptance (NOA) for each submission indicates that Meta’s application meets the registration requirements. Meta now has six months from the NOA issuance date to file a statement of use or request an extension, from August 2023 to January 2024.
This isn’t Maxine Waters’ first time scrutinizing big tech companies’ forays into the digital asset sector. In 2019, Waters expressed her concerns about Meta’s Libra (later Diem) stablecoin project. Meta announced plans to develop a cryptocurrency and its corresponding digital wallet, Calibra. However, the project faced significant opposition from lawmakers and regulators, leading to the project being abandoned and its assets sold to Silvergate Bank in January 2022.
Waters’ letter raises questions about the extent of Meta’s involvement in digital assets, including its plans to launch a cryptocurrency payments platform, the company’s stablecoin research, its partnerships with stablecoin projects, and its adoption of distributed ledger technology (DLT). Lawmakers are wondering what it means for tech giants like Meta to enter the digital asset space, especially given their access to vast amounts of user data and the lack of a federal framework to regulate such ventures. I am concerned.
In a broader context, Meta’s participation in digital assets reflects a growing trend among big tech companies exploring blockchain and cryptocurrencies as potential new business avenues. However, this expansion raises important questions about user privacy, data security, regulatory compliance, and the impact on existing financial systems.
Image source: Shutterstock
