U.S. Senator Sends Letter to Musk Regarding X Money, Questions Stablecoin Plan and User Protections
According to Cointelegraph, U.S. Senator Elizabeth Warren sent a letter to Elon Musk requesting clarification on X platform’s planned payment feature, X Money—including its stablecoin and cryptocurrency integration strategy—and warning that it could pose risks to the financial system and U.S. national security. Warren specifically questioned whether X Money would issue its own stablecoin under exemptions provided by the GENIUS Act, and whether users would be adequately informed that their funds are not covered by FDIC deposit insurance. The letter also noted that X Money’s test preview indicates it may offer a 6% deposit interest rate and that it is partnering with Cross River Bank—a bank previously subject to FDIC enforcement actions.
