The U.S. House Financial Services Committee has issued a letter to Meta's founder and CEO, Mark Zuckerberg, seeking clarification on the company's intentions regarding its five cryptocurrency and blockchain-related trademark applications filed in 2022. Committee ranking member Maxine Waters expressed concerns about Meta's potential expansion into the digital asset ecosystem, contradicting earlier statements made by the company. The article delves into the background of Meta's involvement in cryptocurrency projects, including the abandoned stablecoin Diem, and outlines the specific queries posed by Waters regarding Meta's response to Notice of Allowance (NOA), plans for Web3, crypto payments, digital wallets, stablecoins, distributed ledger technology (DLT), and metaverse integration.
In a letter dated January 22, 2023, the U.S. House Financial Services Committee has called upon Meta, the parent company of Facebook, to provide clarity on its cryptocurrency and blockchain-related plans. The committee, led by Maxine Waters, expressed concerns regarding five trademark applications filed by Meta on March 18, 2022, indicating a potential expansion into the digital asset ecosystem.
The trademarks cover a range of services related to crypto and blockchain assets, including trading, exchange, payments, transfers, wallets, and associated hardware and software infrastructure. The committee's inquiry comes as a response to Meta's earlier statements, particularly a claim made on October 12, 2023, that there was no ongoing digital asset work at Meta.
Notably, Meta's history with cryptocurrency projects includes the abandonment of its stablecoin Diem (formerly Libra) in mid-2019, following regulatory pressure. The company sold Diem to Silvergate Bank for $200 million in January 2022. Additionally, Meta's digital wallet project, Novi (formerly Calibra), failed to materialize as initially planned.
The Notice of Allowance (NOA) for each trademark filing has been sent to Meta, with a response deadline within six months. The U.S. House Financial Services Committee seeks clarification on how Meta intends to respond to the NOAs, whether it plans to pursue Web3, crypto, or digital wallet projects, and if it is launching a crypto payments platform.
The committee's letter includes inquiries about Meta's research into stablecoins, potential partnerships with stablecoin projects, the adoption of distributed ledger technology (DLT), and how its technology might facilitate crypto-related functions within its metaverse ecosystem.
As of the report, Meta has not provided an immediate response to the committee's letter. The company has until February 15, 2023, at the earliest, to respond to the first NOA, with subsequent deadlines extending into July 2023.
The U.S. House Financial Services Committee's scrutiny highlights the ongoing regulatory attention and oversight faced by major technology companies venturing into the cryptocurrency and blockchain space. Meta's responses will likely shape perceptions of its future involvement in the rapidly evolving digital asset landscape.
(JESSE COGHLAN, COINTELEGRAPH, 2024)