Gate News message, April 16 — US Senator Elizabeth Warren has formally requested details from Elon Musk regarding X Money, an upcoming payments feature for the X platform, raising concerns over potential stablecoin integration, regulatory gaps, and risks to financial stability and national security.
In her letter, Warren questioned whether X Money might issue its own stablecoin under the GENIUS Act, which permits private firms to create such assets with fewer regulatory constraints. She highlighted preview materials suggesting users could earn up to 6% annual returns on deposits, questioning how such yields would be generated in a higher-rate environment and whether risky investment strategies might be involved. Warren also flagged a potential partnership with Cross River Bank, which has faced prior enforcement actions from the Federal Deposit Insurance Corporation, and expressed concern that consumers may not understand deposits linked to stablecoins may lack FDIC insurance protection in case of failure.
Beyond financial risks, Warren pointed to broader issues tied to X’s operations, including data privacy breaches, fraud allegations, and misuse by sanctioned entities, arguing these factors could compound risks if financial services are layered onto the platform. Warren requested detailed responses from Musk by April 21, 2026.
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