On April 14, U.S. Senator Elizabeth Warren (D-MA), ranking member of the Senate Banking Committee, sent a letter to X Corp owner Elon Musk, flagging serious concerns over the upcoming launch of X Money. The letter zeroes in on consumer protection, national security, financial stability, and cryptocurrency-related regulatory gaps.
Warren Flags Three Risk Areas: Consumers, Security, and Crypto
Warren noted that Musk has repeatedly described finance as central to X's future since acquiring Twitter. In 2023, Musk said X could become the world's largest financial institution and that users might not need bank accounts. X has secured 40 state money transmitter licenses ahead of X Money's launch. Warren warned: "If your track record operating X is any indication of how you'll operate X Money, consumers, our national security, and the stability of the financial system may be at risk." She linked the launch to Musk's partnership with Acting CFPB Director Russ Vought to dismantle the Consumer Financial Protection Bureau, calling for congressional attention.
Stablecoin Concerns Deepen: GENIUS Act Loophole and Bank Ties
Warren focused heavily on crypto risks, particularly the possibility that X Money could involve stablecoin issuance. She argued that the GENIUS Act, passed while Musk served as a senior adviser to the president, contains a "suspicious carveout" allowing private firms like X to issue stablecoins without certain approvals required of public companies. She cited screenshots suggesting X Money may partner with Cross River Bank, which faced FDIC enforcement in 2023 for unsafe lending and a 2018 action for unfair practices. Preview materials indicated users could earn up to 6% APY on deposit accounts, compared with the target federal funds rate of 3.5%–3.75%. Warren wrote: "Your failure to operate X in a safe and responsible manner does not breed confidence in your ability to safely expand into consumer finance."
The letter also flagged X's operational track record: sanctioned individuals linked to Hezbollah and Houthis bought verified accounts and raised funds, while child sexual abuse material, data privacy violations, and fraud by verified users persisted. Warren demanded written responses by April 21, including details on X Money's launch plans and potential risks.
X Expands Financial Features: Interactive Cashtags Go Live
Meanwhile, X launched interactive Cashtags for iPhone users in the U.S. and Canada on Tuesday, allowing real-time stock and crypto price charts within the app. The move underscores X's broader financial ambitions. Whether X Money will integrate crypto wallets, issue stablecoins, or support dogecoin (DOGE) remains unconfirmed by the company.