Meta boss Mark Zuckerberg faces a potential revolt at the companys annual meeting on Wednesday as shareholders push the Big Tech firm to step up transparency regarding its efforts to protect kids online.
A group led by Lisette Cooper, vice chair of the Franklin Templeton subsidiary Fiduciary Trust International and the parent of a child sex abuse survivor, is backing a non-binding resolution urging Metas board to publish an annual report tracking the companys performance on child safety and protecting young users from harm on its apps.
The report would require quantitative metrics appropriate to assessing whether Meta has improved its performance globally regarding child safety impacts and actual harm reduction to children on its platforms.
If they want to reassure advertisers, parents, legislators, shareholders on whether theyre making a different on dealing with this problem on harm to children, they need to have transparency, Cooper said in an interview with The Post. They need better metrics.
The resolution is set for a vote during a time of intense scrutiny for Zuckerberg-led Meta which faces a legal and regulatory crackdown in the US and abroad about its alleged failure to keep kids safe on Instagram and Facebook.
Zuckerberg himself recently apologized to the families of victims of online sex abuse during a high-profile Congressional hearing.
Metas board of directors opposes the resolution, arguing in an April proxy statement that the requested report is unnecessary and would not provide additional benefit to our shareholders.
Cooper and her allies cite a raft of pending litation against Meta related to child safety. Last October, Meta was sued by dozens of states who alleged that the company had ignored the sweeping damage these platforms have caused to the mental and physical health, including poor sleep, disruption to schoolwork, anxiety and depression.
A separate suit from New Mexicos attorney general alleged Meta has exposed underage users to purported sex predators.
As The Post reported earlier this month, Meta is also spearheading a massive lobbying campaign to kill or weaken a pair of New York bills aimed at protecting kids online.
Children are going to be the users of the future. If they have a bad experience on the platform, they are not going to keep coming back. This makes a huge difference to us as investors, Cooper added.
Two of the largest proxy advisory firms, Institutional Shareholder Services and Glass Lewis & Co. have recommended shareholders vote in favor of the resolution.
We believe that the requested report and the adoption and reporting of targets will provide shareholders with valuable information, so they can better understand this sensitive issue in the context of the Company’s efforts to minimize harmful content on its platforms, Glass Lewis said regarding the proposal.
ISS determined that shareholders would benefit from additional information on how the company is managing the risks related to child safety.
Shareholder resolutions are essentially doomed without the support of Zuckerberg, who controls 61% of the companys voting power through his ownership of so-called super voting Class B shares.
Proxy Impact, which filed the resolution on Coopers behalf, noted in a filing that a similar proposal at last years annual meeting received nearly 54% support from shares that werent controlled by Meta management.
This is like a basic first step for any business plan get the data, said Proxy Impact CEO Michael Passoff. What gets measured gets managed, and theyre not doing that. Or if they are, they just arent making it available to anyone.
In its proxy filing, Meta noted various steps it has taken to address online child safety concerns, including the creation of more than 30 tools across our apps to help support teens and families and existing policies that prohibit harmful content that seeks to exploit kids.
We want people, especially young people, to foster their online relationships in a safe, positive, and supportive environment, and we work closely with a broad range of stakeholders to inform our approach to safety, the company said.
Metas board also recommended that shareholders reject a number of other resolutions, including one requesting a third-party report that would assess the potential risks and benefits of instituting a higher minimum age for users of its social media products.
Metas legal and regulatory headaches on the issue of child safety arent limited to the US.
Earlier this month, the European Commission revealed it was investigating whether Meta had violated a sweeping new law called the Digital Service Act, which requires the largest tech firms to police content on their platforms.
European watchdogs expressed concern that Facebook and Instagram may stimulate behavioral addictions in children as well as rabbit-hole effects, where kids stay glued to the apps despite harmful health effects.
Meta could face fines of up to 6% of its annual revenue if it is found to have violated the DSA.
Arjun Sethi, the co-CEO of major crypto exchange Kraken, criticized the United Kingdom’s crypto regulations, which he believes hinder services for their customers.
In an interview with the Financial Times, Sethi said that “in the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box.” He suggested that the disclaimers have a significant impact on customer experience.
Sethi suggested that disclosures slow users down and that, because of the importance of speed in crypto trading, “it’s worse for customers.” He concluded that “disclosures are important […] but if there are 14 steps, it’s worse.”
The UK Financial Conduct Authority’s (FCA) updated financial promotion regime came into force in October 2023. It introduced a “cooling-off” period for first-time crypto investors and requires firms to assess whether users have sufficient knowledge and experience before trading.
Sethi said that the rules may prompt customers to avoid investing in crypto altogether, potentially leading to missed potential gains. The FCA defended the rules, noting that “some consumers may make an informed decision that investing in crypto is not right for them — that is our rules working as intended.”
Example of disclaimer from the Kraken website. Source: Kraken
Despite frustrations with the FCA, the UK appears to be moving toward a broader alignment with the United States on digital-asset oversight.
Lisa Cameron, a former United Kingdom Member of Parliament and founder of the UK-US Crypto Alliance, said she believes a joint “sandbox” between the UK and the US is in development to align their crypto markets.
She came to this conclusion after discussion with US Senators and regulators and expects the sandbox’s purpose to be to “iron out some of this in terms of passporting” for crypto licenses between the UK and the US.
On Monday, the Bank of England published a consultation paper proposing a regulatory framework for stablecoins. The new legislation is focused on sterling-denominated “systemic stablecoins” widely used in payments, similar to the US’s GENIUS Act.
A crypto collaboration between the UK and the US is not a new phenomenon. September reports noted that treasury authorities in the US and UK created a transatlantic task force to explore “short-to-medium term collaboration on digital assets.” Also in September, UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed how the two nations could strengthen their coordination on crypto.
September also saw UK trade groups urge the UK government to include blockchain technology in a technology collaboration with the US program known as “Tech Bridge.” A joint letter by the organization warned that “excluding digital assets from the UK-US Tech Bridge would be a missed opportunity,” and that it “risks leaving Britain on the sidelines.”
Japan’s first domestic stablecoin issuer said digital asset companies may soon become significant players in the country’s sovereign debt market, potentially reshaping monetary policy.
JPYC, the Tokyo-based company behind Japan’s first yen-pegged stablecoin, said issuers may evolve into major buyers of Japanese government bonds (JGBs) as their reserves increase.
In comments reported by Reuters, JPYC founder and CEO Noritaka Okabe said stablecoin reserves could fill the gap left by the Bank of Japan (BOJ) as it slows its bond purchases.
The Tokyo-based startup started issuing its yen-backed token, also dubbed JPYC, on Oct. 27, under the country’s revised Payment Services Act, its first legal framework for stablecoins. The company has issued about $930,000 worth of tokens to date and aims to reach a circulation of $66 billion within the next three years.
The token is backed by a combination of bank deposits and JGBs and is fully convertible to yen. It’s also designed to move seamlessly across blockchain rails.
Stablecoin issuers as new bond buyers
Okabe said JPYC plans to invest 80% of its issuance proceeds in JGBs and keep the remaining 20% in bank savings, initially focusing on short-term securities. He added that the company may consider longer-term JGBs in the future as demand grows and the yields remain attractive.
This type of allocation could give stablecoin issuers a significant role in Japan’s debt market, where the BOJ still holds about half of the $7 trillion JGB market. As the central bank slows bond purchases, new buyers need to absorb the issuance.
Because of this, Okabe floated the idea that stablecoin reserves could naturally fill part of the vacuum, linking blockchain adoption to fiscal financing.
“The volumes of JGBs stablecoin issuers buy will be swayed by the balance of supply and demand for stablecoins,” he said, noting that this trend “will happen around the world” and that Japan will not be an exception.
Okabe’s comments came as stablecoins continue to see adoption in Japan’s traditional finance sector.
On Friday, the Financial Services Agency (FSA), the country’s financial regulator, endorsed a yen-pegged stablecoin project led by Japan’s biggest financial institutions.
The FSA announced the “Payment Innovation Project,” an initiative that involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The regulator said that the companies will begin issuing payment stablecoins this month.
Autonomous EV freight trucking company Einride is planning to go public on the New York Stock Exchange through a SPAC deal with Legato Merger Corp. III, a blank check company, valuing it at $1.8 billion.
The deal is expected to raise $219 million in gross proceeds, with up to an additional $100 million in PIPE capital from institutional investors, with Einride to begin trading during the first half of 2026.
In announcing its plans, the Stockholm, Sweden-based company reported a contracted annual recurring revenue base of $65 million and over $800 million in potential long-term ARR.
Founded in 2016, Einride has over 25 customers across seven countries, and regulatory permits in the United States and Europe. Its current fleet of approximately 200 electric vehicles is used by customers including GE Appliances and Swedish online pharmacy company Apotea.
“Today marks a defining moment for Einride and for the future of freight technology,” said Roozbeh Charli, CEO of Einride, in a release. “We’ve proven the technology, built trust with global customers, and shown that autonomous and electric operations are not just possible, but better. This transaction positions us to accelerate our global expansion and continue to deliver with speed and precision for our customers,” said Charli, who took over the CEO post from co-founder and previous CEO Robert Falck last May.
Freight trucking in the U.S. and elsewhere, estimated by Einride at a $4.6 trillion market, is both carbon-intensive and inefficient. Einride’s technology is designed to reduce emissions at scale and prove electric freight is viable both technologically and economically.
PepsiCo is among the companies that has been piloted use of Einride freight solutions, in markets including Memphis, Tennessee, and in Germany. Heineken added EV freight routes between the Netherlands and Germany in 2024, and to Austria this year. Einride also has plans to deploy 300 electric trucks across Europe by 2030 with Mars.
To date, Einride provides freight services for both driver-operated electric trucks and heavy-duty autonomous EV trucks. Its technology can be licensed to third parties, both operational planning AI software and its autonomous driving system.
In May of last year, Einride signed a deal with DP World to deploy the largest autonomous EV fleet in the Middle East, at the major UAE port, Jebel Ali, one of the world’s largest shipping points.
While many of its deals to date are for EV and not autonomous technology, in the U.S. it marked a year of autonomous operations with GE Appliances in 2024, and began autonomous freight shipments with Swedish online pharmacy company Apotea, Europe’s first daily autonomous freight trips.
The U.S. is the company’s second-largest market and it plans to continue to invest in the country to accelerate deployment of its autonomous systems. In all, Einride reports over 1,700 driverless hours in contracted customer operations, over 11 million electric miles driven, and over 350,000 executed shipments.
“This transaction with Einride aligns with our vision to bring industry-leading, innovative technology to the public markets,” said Eric Rosenfeld, chief SPAC officer of Legato, in the release. “Einride’s proven customer relationships, regulatory achievements, and technology platform position the Company to be a leader in the transformation of the freight industry.”
It competes with autonomous trucking companies including Aurora Innovation and fellow Disruptor Waabi, which recently hired Uber Freight CEO and founder Lior Ron as its chief operating officer.
According to data from Matthew Kennedy, senior strategist at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs, Legato Merger III raised $175 million in its February 2024 IPO ($201 million including a deal overallotment). The management term’s prior two SPACs produced Algoma Steel, a Canada-based steel producer that closed its merger with Legato I in October 2021, and Southland Holdings, an engineering and construction company that completed its merger with Legato II in Feb 2023. Both stocks are currently trading below their $10 transaction price. “This is not unusual for a de-SPAC, but it does highlight the general risk of holding into the merger that we’ve seen,” Kennedy said.
The SPAC market is booming this year, raising nearly 200% more proceeds than this point last year, according to Renaissance Capital data. It is the third-biggest year ever for SPACs, behind 2020 and 2021, measured in deal flow and proceeds, with Kennedy citing an acceleration in retail trading in tech companies, “which are the wheelhouse of SPAC merger activity,” he said.
Transportation technology, in particular, has been a focus for SPAC mergers, including autonomous driving and electrification. Kennedy noted SPACs in the space have mixed track record, with winners including Joby Aviation and Quantumscape, but a significant number of losers including Nikola, Vinfast, Lilium, Vertical Aerospace, Faraday Future, Volta, Polestar, Lucid, Aeye, and Canoo.