US Senator Elizabeth Warren is seeking clarity from Elon Musk regarding X Money, a new payments feature intended for the X platform, amidst increasing scrutiny over the platform’s financial goals as Musk aims to evolve X into a comprehensive “everything app” that includes financial services.
In a formal correspondence, Warren expressed concerns about the potential financial stability risks associated with integrating cryptocurrencies and the issuance of stablecoins. Her letter highlights the implications of the GENIUS Act, which may allow private companies like X to issue stablecoins with reduced regulatory oversight.
Among the key issues raised, Warren pointed to promotional material indicating that users may receive up to 6% annual yields on deposits, prompting questions about the sustainability of such returns in a higher interest rate environment. She expressed worries that these returns might rely on volatile investment strategies or other high-risk practices.
Additionally, Warren scrutinised a possible collaboration with Cross River Bank, which has faced regulatory action from the Federal Deposit Insurance Corporation (FDIC) for compliance issues. She questioned whether users understand that deposits associated with stablecoins might not be safeguarded by FDIC insurance in cases of bank failure.
Warren also flagged broader concerns regarding X’s handling of data privacy, past fraud incidents, and the platform’s use by sanctioned individuals. She believes these existing issues could exacerbate financial risks when financial services are introduced.
The senator has requested detailed responses from Musk by 21 April 2026, urging transparency regarding the platform’s operational framework and the potential risks associated with it.
