Senator Elizabeth Warren has raised significant concerns about the impending April launch of X Money, the financial arm of Elon Musk‘s platform. In a letter to Musk, she warned that the service risks consumer protection, national security, and financial stability, citing the company’s acquisition of state licenses and previews of high-yield deposit accounts. Warren also criticized a regulatory carveout in the GENIUS Act that she argues unfairly advantages private firms like X in issuing stablecoins.
Senator Elizabeth Warren has sent a letter to Elon Musk expressing alarm over the planned April launch of his payment platform, X Money. *“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 wrote.
Warren highlighted X Money‘s acquisition of over 40 state money transmitter licenses and preview materials suggesting deposit accounts with yields up to 6% APY. She stated this rate is significantly above the current Federal Funds Rate range of 3.5-3.75%.
The Senator pointed to issues at X, including its AI chatbot producing child sexual abuse material, as evidence of irresponsible operation. She also raised concerns about a potential partnership with Cross River Bank, which has faced past FDIC enforcement actions.
Her scrutiny comes amid a transformed regulatory landscape following the Trump administration’s restructuring of the Consumer Financial Protection Bureau. Warren flagged a “suspicious carveout” in the GENIUS Act that she argues allows private companies to issue stablecoins without required approvals.
X Money is central to Musk’s ambition to build an “everything app” handling users’ financial world. The platform has already launched limited beta features allowing users to trade stocks and crypto via data tools, though the firm clarified it is not acting as a broker.
Speculation persists on whether the service will include cryptocurrency payments, particularly for Musk’s favored Dogecoin. To date, however, the firm has not shared concrete details about crypto functionality for the upcoming launch.
