Meta Faces Pressure from US House Financial Services Committee Over Crypto Plans

U.S. House Committee Demands Explanation for Five Meta Trademark Filings Regarding Cryptocurrency Plans

US lawmakers urge Meta for information on their cryptocurrency and blockchain plans

The United States House Financial Services Committee is turning up the heat on Meta, urging the tech giant to disclose any blockchain or cryptocurrency-related endeavors. This comes as five cryptocurrency and blockchain-related trademark applications from 2022 remain active. Committee ranking member Maxine Waters penned a letter to Meta founder and CEO Mark Zuckerberg and operating chief Javier Olivan, expressing concerns about the company’s intentions in the digital assets space.

In her letter, Waters highlighted the five trademark applications filed by Meta on March 18, 2022, which suggest that the company is actively expanding its involvement in the digital assets ecosystem. This contradicts Meta’s previous statement to the Democratic Financial Services Committee staff on October 12, 2023, where they claimed to have no ongoing digital assets work.

This isn’t the first time Meta has faced scrutiny from lawmakers regarding its foray into the crypto realm. Back in mid-2019, Meta’s plans for its payments cryptocurrency stablecoin, formerly known as Libra and later rebranded as Diem, were abandoned due to regulatory pressure. Diem was eventually sold for $200 million to the now-defunct Silvergate Bank in January 2022. Similarly, Meta’s digital wallet project, Novi (previously Calibra), set to launch in 2020, never materialized, leaving users without any indication of a new release date.

The trademark applications filed by Meta cover a range of services related to crypto and blockchain assets, including trading, exchange, payments, transfers, wallets, and the associated hardware and software infrastructure. Each application has received a Notice of Allowance (NOA), indicating that it meets the registration requirements. Within six months of receiving the NOA, Meta must either file a statement confirming its intention to use the trademark or request a six-month extension.

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Meta has until at least February 15 to respond to the first NOA, which was sent on August 15, 2023. The most recent NOA was sent on January 16, giving Meta until July 16 to respond. In her letter, Waters posed several questions to Meta, seeking answers about how the company plans to deal with the NOAs, whether it intends to pursue Web3, crypto or digital wallet projects, and if it has any plans to launch a crypto payments platform. She also inquired about Meta’s research into stablecoins, partnerships with stablecoin projects, adoption of distributed ledger technology (DLT), and the integration of crypto-related functionalities within its metaverse.

Despite the letter from the House Financial Services Committee, Meta has yet to provide a response to these inquiries. It remains to be seen how Meta will address the concerns raised and whether it will reveal any upcoming blockchain or crypto-related projects.

Q&A:

Q: Why is the House Financial Services Committee pressuring Meta? A: The committee is pressuring Meta due to the existence of five active cryptocurrency and blockchain-related trademark applications from 2022. This suggests that Meta may have undisclosed plans in the digital assets ecosystem, contrary to their previous claims of no ongoing digital assets work.

Q: What happened to Meta’s previous cryptocurrency stablecoin and digital wallet projects? A: Meta’s cryptocurrency stablecoin, previously known as Libra and later rebranded as Diem, was abandoned in mid-2019 due to regulatory pressure. It was eventually sold for $200 million in January 2022. Meta’s digital wallet project, Novi (previously Calibra), which was set to launch in 2020, has yet to materialize with no indication of a new release date.

Q: What services do the trademark filings cover? A: The trademark filings from Meta cover various services related to crypto and blockchain assets, including trading, exchange, payments, transfers, wallets, and the associated hardware and software infrastructure.

Q: When does Meta need to respond to the Notice of Allowance (NOA)? A: Meta has until at least February 15 to respond to the first NOA, and the latest NOA gives them until July 16 to respond. The response can include a statement confirming the intention to use the trademark or a request for a six-month extension.

Q: What did Maxine Waters ask Meta in her letter? A: Maxine Waters asked Meta about their plans to deal with the NOAs, whether they have any Web3, crypto, or digital wallet projects in the works, and if they are planning to launch a crypto payments platform. She also queried Meta’s research into stablecoins, partnerships with stablecoin projects, adoption of distributed ledger technology (DLT), and the integration of crypto-related functionalities within its metaverse.

Future Outlook and Investment Recommendations

With Meta’s ongoing trademark applications and the House Financial Services Committee scrutiny, it is clear that the company is exploring opportunities in the blockchain and crypto space. If Meta indeed reveals its plans, it could have significant implications for the broader digital assets ecosystem.

Investors and crypto enthusiasts should closely monitor developments in Meta’s projects. The potential introduction of a crypto payments platform or a renewed effort in the stablecoin arena could create exciting opportunities for investment and collaboration. Additionally, Meta’s exploration of distributed ledger technology (DLT), Web3 innovations, and the integration of crypto functionalities within its metaverse could signal a long-term commitment to blockchain technology.

As always, it is important for investors to conduct thorough research and due diligence before making any investment decisions. Stay informed about the latest updates from Meta and the regulatory landscape surrounding digital assets. Engaging with a diverse set of resources and seeking professional advice will help navigate the evolving blockchain and crypto industry.

References:

1. Committee letter to Meta
2. Meta’s AI overhaul: Zuckerberg’s plan to integrate and expand generative AI research
3. Nigeria’s CBN greenlights CNGN stablecoin launch in February
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