Key Takeaways:
Warren flagged Elon Musk’s X Money launch as posing consumer and security risks. Concerns tie X expansion to crypto rules and oversight gaps under the GENIUS Act. The letter calls for congressional attention as X moves further into financial services. Elizabeth Warren Targets X Money Over Risks and Oversight GapsThe senator tied the issue directly to Musk’s stated goal of making X an everything app with financial services at its core. The letter noted that after acquiring Twitter and renaming it X, Musk has repeatedly described finance as central to the platform’s future. The lawmaker added that Musk said in 2023 X could become the largest financial institution in the world and that users might not need a bank account. She also pointed to X securing 40 state money transmitter licenses ahead of the X Money 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 also linked the launch to her claim that Musk worked with Acting Consumer Financial Protection Bureau Director Russ Vought to dismantle the Consumer Financial Protection Bureau, the agency responsible for policing consumer financial products such as X Money. She said this sequence raises the need for congressional attention as X moves further into financial services.
Musk said on social media platform X on March 10: “X Money early public access will launch next month.” The post did not include details on features, rollout structure, or supported services, leaving the scope of the launch unclear.
Crypto Concerns Grow Around Stablecoin and Banking PlansBeyond that, the letter argued X’s operational track record heightens concerns about its push into payments. The senator pointed to instances where sanctioned individuals, including those linked to Hezbollah and the Houthis, were able to purchase verified accounts and raise funds on the platform. She also cited issues involving child sexual abuse material, data privacy violations, and widespread fraud by verified users. Requesting written responses from Musk by April 21, including details on X Money’s launch plans and potential risks, the lawmaker emphasized:
“Your failure to operate X in a safe and responsible manner does not breed confidence in your ability to safely expand into consumer finance.”
