Tech
A US lawmaker investigates Meta’s involvement with digital assets and blockchain technology
Deputy Maxine Watersranking member of the Financial Services Committee, launched an investigation into Meta’s involvement with digital assets over financial stability concerns.
Waters wrote a letter to top Meta executives Mark Zuckerberg and Javier Olivan on January 22, highlighting a series of trademark applications that suggest potential expansion into digital currency and blockchain technology, raising questions about the company’s intentions and activities in this area.
He asked for clarification on Meta’s intentions regarding web3, digital wallets and other related projects. These investigations aim to ascertain the extent of Meta’s current and future involvement in digital assets, including any potential research and development into stablecoin projects or partnerships with other stablecoin issuers.
Waters has long been critical of the cryptocurrency industry and believes the sector should be subject to the same rigorous regulations as banks, especially stablecoin issuers.
Trademark applications
The five trademark applications, filed with the United States Patent and Trademark Office (USPTO) in 2022, cover a broad range of digital asset-related services. The applications include a wide range of services, from online social networks and dating services tailored for investors to downloadable software for managing digital currency.
The applications also include provisions for various digital asset-related activities, ranging from financial trading and trading of various forms of digital currency to the design and development of blockchain-related computer hardware and software.
The remarks raised concerns, particularly given Meta’s past ventures into digital currency and the resulting regulatory and public scrutiny.
Despite these documents, Meta staff said in October 2023 that the company is neither conducting nor planning any work on blockchain- or stablecoin-based products. However, the statement contradicts detailed descriptions in Meta’s trademark applications.
Requests for letters
The USPTO process requires that following issuance of a Notice of Allowance (NOA), applicants must submit a Statement of Use or Extension Request within six months. This procedure is essential to maintain the validity of the trademark application and the products and services associated with it.
Waters questioned whether Meta would file a statement of use or extension request for their recent trademark applications and sought details on the scope of Meta’s research and development in stablecoin projects, partnerships and ledger technology adoption distributed on its platforms.
He also asked whether Meta plans to launch a cryptocurrency payments platform and how its technology facilitates various aspects of cryptocurrency management, particularly in its Metaverse platform.
Waters’ letter highlighted Meta’s past efforts in the digital currency realm, particularly the development of the Libra (later renamed Diem) cryptocurrency project, as an indication of the company’s digital asset ambitions.
The Libra/Diem project has faced significant opposition from regulators and politicians due to concerns about privacy, national security and the potential impact on global financial systems. Meta eventually sold it amid the backlash.
Meta’s response to these questions will be closely watched, as it could have a significant impact on the regulatory landscape surrounding digital currencies and blockchain technology. The company’s actions and strategies in this evolving field remain a point of keen interest and scrutiny from policymakers and industry observers.