The push for stablecoins in the United States is advancing on two divergent fronts. On one hand, tech giant Meta is reportedly exploring the integration of stablecoin payments into its platforms after a years-long pause from crypto development. On the other, legislative efforts to regulate these digital assets encountered a setback on May 8, as the US Senate failed to advance the GENIUS Act, a bipartisan bill focused on establishing a national framework for payment-based stablecoins.
Meta Explores Stablecoin Integration After Years of Crypto Silence Amid Growing US Strategic Interest
After a multi-year retreat from the cryptocurrency world, Meta is reportedly charting a course back toward digital assets — this time, focusing on stablecoins. According to a recent report by Fortune, the tech giant is in early discussions with leading crypto infrastructure firms to explore integrating stablecoin payments across its suite of platforms, including Facebook, Instagram, and WhatsApp.
Although Meta has not finalized a path forward, one source familiar with the matter revealed that the company is considering a multi-token strategy, potentially supporting top stablecoins like Tether’s USDt and Circle’s USDC. The move could re-establish Meta as a major player in the digital finance space after its high-profile retreat from the Libra (later Diem) project in 2022.
Meta’s Strategic Reentry: Why Stablecoins Now?
The timing of Meta’s renewed interest in crypto is far from coincidental. Stablecoins — digital tokens pegged to fiat currencies like the US dollar — have surged in both market capitalization and institutional relevance over the past year. As of May 2025, the total market cap of stablecoins has eclipsed $230 billion, reflecting surging demand from retail and institutional users alike.
An overview of the stablecoin market (Source: RWA.XYZ)
Meta's pivot toward stablecoin payments also aligns with broader trends among major fintech and payments firms. On May 7, Visa confirmed its investment in stablecoin infrastructure startup BVNK, with Visa's global head of products and partnerships, Rubail Birwadker, stating that “stablecoins are capturing an increasing share of global payments.”
On the same day, Stripe rolled out stablecoin-based accounts for users in more than 100 countries, enabling them to send, store, and convert digital dollars into fiat. Stripe’s move was seen as a clear bet on the growing utility of stablecoins in global commerce — especially in countries with limited access to stable fiat currencies.
Meta, with its billions of users worldwide, could become the most powerful distribution channel for stablecoins to date.
Meta’s original crypto ambitions began with Libra in 2019 — a digital currency project backed by a consortium of tech and financial firms. The effort was ultimately shelved in 2022 amid regulatory blowback from global lawmakers, particularly in the United States and Europe. Meta sold the intellectual property for Diem to Silvergate Bank, exiting the crypto stage entirely.
Now, instead of launching its own currency, Meta appears to be embracing existing stablecoin infrastructure — a more politically palatable move in light of the US government’s shifting stance on digital assets.
Stablecoins Now a US Strategic Priority
The regulatory and geopolitical context surrounding stablecoins has changed dramatically since Meta's Libra era. The Trump administration has explicitly embraced stablecoins as a strategic financial instrument. In a move that further entwines politics and crypto, World Liberty Financial (WLFI) — a Trump-backed digital finance company — launched USD1, a US dollar-pegged stablecoin, in March. As of May, USD1 had already climbed to the seventh-largest stablecoin by market capitalization.
According to the administration, stablecoins could bolster US dollar hegemony by driving global demand for US Treasury bonds and enabling faster cross-border trade using digital dollars.
However, efforts to create a stable regulatory framework remain mired in partisan gridlock. On May 8, Senate Democrats blocked the GENIUS Stablecoin Act, halting progress on what Trump administration officials have touted as the cornerstone of America’s digital dollar dominance strategy.
If Meta proceeds with stablecoin integration, the implications would be enormous. Platforms like WhatsApp and Facebook Messenger are already dominant communication tools in many developing economies where stablecoins are often used to avoid inflation and currency instability. Embedding stablecoin payments directly into Meta’s apps could unlock an entirely new frontier in financial services — enabling everything from micro-payments and remittances to merchant services.
Still, many questions remain unanswered. Will Meta partner exclusively with US-regulated stablecoins like USDC? How will it navigate international licensing and compliance in jurisdictions with strict crypto rules? And will the company face fresh scrutiny from regulators wary of another tech-led financial revolution?
What is clear is that the stablecoin sector is no longer a fringe financial experiment. With heavyweights like Meta, Visa, Stripe, and even former presidents backing their growth, stablecoins appear destined to become central to the next era of global finance.
GENIUS Act Falls Short in US Senate, Stalling Momentum on Stablecoin Regulation
In a closely watched procedural vote on May 8, the US Senate failed to advance the GENIUS Act — a bipartisan legislative package aimed at providing long-awaited regulatory clarity for stablecoins used in payments.
The bill, formally titled the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, was blocked from moving forward after it did not meet the necessary 60-vote threshold for cloture, despite support from lawmakers across both parties.
The setback represents a significant — if temporary — blow to the US crypto policy landscape, particularly for stakeholders seeking a more predictable regulatory environment for dollar-pegged digital assets that are becoming increasingly critical to both domestic and international finance.
Sponsored by Senator Bill Hagerty and co-sponsored by Senators Tim Scott (R), Kirsten Gillibrand (D), Cynthia Lummis (R), and Angela Alsobrooks (D), the GENIUS Act was widely hailed as a rare bipartisan effort in Washington’s fragmented crypto debate.
Its primary focus was to establish a robust federal framework for stablecoins, including issuer registration, reserve requirements, and Anti-Money Laundering (AML) compliance.
The bill’s emphasis on payment-focused stablecoins, rather than more speculative or controversial crypto assets, was seen as a pragmatic attempt to extend US dollar dominance globally through blockchain-based financial innovation.
However, despite recent amendments to address Democratic concerns — particularly around President Donald Trump’s ties to crypto ventures and potential risks of insufficient oversight — the legislation faltered at the eleventh hour.
Senate Democrats raised objections during final negotiations, expressing skepticism about the growing intersection of politics, private crypto enterprises, and national financial policy. Sources familiar with the debate cited concerns over potential regulatory capture and lack of enforceable guardrails, even after stricter AML provisions were added to the bill.
In response, Senate Majority Leader John Thune (R-SD) sharply criticized the opposition, stating, “Democrats have been accommodated every step of the way […] frankly, I just don’t get it.”
His remarks reflected mounting frustration among Republican leaders who viewed the bill as an opportunity to unite the country around a strategic financial tool while keeping American fintech innovation competitive on the global stage.
Industry Reaction: Disappointment and a Call to Persist
The defeat sparked a wave of disappointment among crypto advocates and financial policy stakeholders.
“I’m deeply disappointed that we were unable to pass this important, bipartisan-crafted stablecoin legislation today. Make no mistake, digital assets are the future and America must lead the way,” said Senator Cynthia Lummis, a longtime digital asset supporter, on X.
Treasury Secretary Scott Bessent, one of the bill’s most vocal champions, echoed the sentiment. In a detailed post, he warned that without swift legislative action, the US risks falling behind in shaping the global financial architecture.
Stablecoins: A Strategic Frontier
Stablecoins — cryptocurrencies pegged to fiat currencies like the US dollar — have rapidly grown in market capitalization, now exceeding $230 billion globally. They are increasingly used for cross-border payments, decentralized finance (DeFi), and as a bridge between traditional finance and blockchain-based platforms.
The GENIUS Act aimed to provide a uniform regulatory framework that would give US-based issuers and users a legal foundation to operate, while promoting dollar-backed stablecoins as instruments of economic influence and international trade.
The failure of the bill leaves a vacuum that many in the industry fear could lead to regulatory fragmentation, as individual states continue to implement their own rules and foreign jurisdictions take the lead in defining standards for stablecoin use.
Despite the failed vote, sources on Capitol Hill suggest the bill may not be entirely dead. Lawmakers are reportedly exploring a path to reintroduce a revised version of the GENIUS Act later this year, possibly as part of a broader financial innovation or defense spending package.
