Warren questions Musk on X Money’s crypto risks

Elizabeth Warren questioned Elon Musk about X Money’s 6% yield, stablecoin plans, and Cross River Bank partnership, citing risks to consumers, financial stability, and national security.

Senator Elizabeth Warren has sent a letter to Elon Musk expressing concerns about the upcoming launch of X Money, a payments platform set to be integrated into the X social media network. Warren questioned the platform’s plans to offer a 6% annual yield on deposits, the potential issuance of a stablecoin under the GENIUS Act, and its partnership with Cross River Bank, which has previously faced enforcement actions from the FDIC. She warned that X Money’s crypto and stablecoin integrations could pose risks to consumers, financial stability, and national security. Warren also raised concerns about how X Money could sustainably offer high yields given current market rates, as well as issues related to user data privacy and the lack of FDIC insurance for deposits. The senator expects a response from Musk by April 21, reflecting broader legislative skepticism toward private companies issuing stablecoins and engaging in crypto-related financial activities.