Congresswoman Maxine Waters Questions Meta’s Ongoing Crypto Efforts

Meta, the company formerly known as Facebook, has been making headlines with its ambitious plans to create a metaverse, a virtual reality platform that would allow users to interact with digital worlds and each other. Meta has also been investing heavily in cryptocurrency and blockchain technology, hoping to leverage these innovations to power its metaverse vision.

However, not everyone is convinced that Meta’s crypto efforts are in the best interest of the public. Congresswoman Maxine Waters, the chairwoman of the House Financial Services Committee, has recently sent a letter to Meta CEO Mark Zuckerberg, asking him to provide more information and transparency about his company’s crypto projects.

In her letter, Waters expressed her concerns about the potential risks and challenges that Meta’s crypto initiatives pose to consumers, investors, financial stability, national security, and human rights. She also questioned Meta’s ability and willingness to comply with existing laws and regulations, especially in light of its previous scandals and controversies involving data privacy, misinformation, and election interference.

Waters requested that Zuckerberg respond to a series of questions by February 15, 2024. Some of the questions include:

What are the specific goals and objectives of Meta’s crypto projects, such as Novi, Diem, and NFTs? How does Meta plan to ensure the safety and security of its crypto users and their funds? How does Meta intend to address the environmental and social impacts of its crypto activities, such as energy consumption, carbon emissions, human rights violations, and illicit activities? How does Meta coordinate with regulators and policymakers in the U.S. and abroad to ensure compliance with relevant laws and standards? How does Meta handle the governance and oversight of its crypto projects and partners?

Waters also urged Zuckerberg to testify before her committee in person as soon as possible. She stated that she is “deeply troubled” by Meta’s lack of engagement and cooperation with Congress on its crypto matters. She warned that if Meta fails to provide satisfactory answers and actions, her committee will “consider all available tools” to hold the company accountable.

Meta has not yet publicly responded to Waters’ letter. However, the company has previously stated that it is committed to working with regulators and stakeholders to advance its crypto vision in a responsible and inclusive way. Meta has also argued that its crypto projects will benefit users by providing them with more choice, access, and opportunity in the digital economy.

FTX, one of the leading cryptocurrency exchanges in the world, has seen its native token FTT surge as much as 11% on Tuesday, reaching a new all-time high. The rally was driven by the news that Grayscale, the largest digital asset manager, had sold off its shares in the Bitcoin Trust (GBTC) and the Ethereum Trust (ETHE) and reinvested the proceeds in FTX’s exchange-traded products (ETPs).

Grayscale’s move was seen as a vote of confidence in FTX and its ETPs, which offer exposure to various crypto assets such as Bitcoin, Ethereum, Solana, Cardano, and Polkadot. FTX’s ETPs are listed on several regulated platforms in Europe and Asia, such as SIX Swiss Exchange, Börse Stuttgart, and SGX. FTX’s ETPs also have lower fees and better liquidity than Grayscale’s trusts, which trade at a significant discount to their net asset value.

FTX’s founder and CEO, Sam Bankman-Fried, commented on the development on Twitter, saying that he was “incredibly grateful” to Grayscale for choosing FTX’s ETPs and that he hoped to “continue building out the best products in crypto”. He also hinted that more announcements were coming soon, adding to the bullish sentiment around FTX and FTT.

FTX has been on a growth spree in recent months, expanding its global presence and influence in the crypto space. The exchange has secured several high-profile partnerships and sponsorships, such as with the NBA, MLB, Tom Brady, Steph Curry, and esports team TSM. FTX has also acquired several companies and platforms, such as Blockfolio, LedgerX, and NFT marketplace OpenSea. FTX has also launched several innovative products and features, such as FTX Pay, FTX NFTs, FTX Arena, and FTX US.

FTX’s native token FTT benefits from the exchange’s success, as it is used for various purposes on the platform. FTT holders enjoy lower trading fees, higher referral bonuses, increased airdrops, and access to exclusive features and perks. FTT is also burned periodically based on the exchange’s revenue, creating a deflationary pressure on the token supply. According to FTX’s website, over 9 million FTT have been burned so far, representing about 9% of the total supply.

FTX and FTT show no signs of slowing down, as the exchange continues to innovate and dominate the crypto market. With Grayscale’s endorsement and more potential catalysts on the horizon, FTT could reach new heights in the near future.