The announcement yesterday that Facebook’s Novi was launching a pilot for its stablecoin wallet attracted a rapid response from Democrat Senators who wrote a letter urging Facebook to stop the pilot.
Yesterday’s letter was signed by five Senators Brian Schatz, Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown, Richard Blumenthal, Elizabeth Warren and Tina Smith.
Novi’s pilot does not use the Diem stablecoin or payments network and instead uses the Paxos Dollar. Facebook’s wallet subsidiary has secured state-issued money transmitter licenses in 46 states. However, the Senators highlighted that this is not the equivalent of having a blessing from “all U.S. regulators,” which Mark Zuckerberg offered in testimony two years ago.
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