Senator Elizabeth Warren has asked Elon Musk for detailed information about X Money, the payments feature expected to roll out on the X platform. In a letter to Musk, the Massachusetts Democrat raised concerns that X Money’s planned stablecoin and cryptocurrency integrations could create risks for the financial system and U.S. national security.
Warren — a long-time critic of both Musk and aspects of the crypto industry — questioned whether X Money intends to issue its own dollar‑pegged stablecoin under a carveout in the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The GENIUS framework allows certain non-bank entities to issue payment stablecoins, a shift that has drawn scrutiny from some lawmakers and regulators.
Her letter notes that X Money’s limited beta preview appears to advertise a roughly 6% interest rate on deposits and indicates a partnership with Cross River Bank, which has previously been the subject of enforcement action by banking regulators. Warren asked how X Money would fund that yield, writing that it is unclear what “risky investments, intrusive data monetization activities or gimmicks” X Money or its partner might use to generate those returns when the target federal funds rate is far lower.
Warren also pressed whether potential customers would be clearly informed that deposits with X Money may not be protected by Federal Deposit Insurance Corporation (FDIC) insurance. FDIC Chair Travis Hill has said that, under the GENIUS Act, payment stablecoins are not “subject to deposit insurance” or guaranteed by the U.S. government. While the legislation does not explicitly ban pass-through FDIC insurance — which could extend coverage to end users through an eligible intermediary bank — Hill has said allowing such a structure would be inconsistent with the broader intent of the regulatory framework.
The senator’s questions signal possible pushback in Congress against enabling big tech and other non‑bank companies to offer dollar‑pegged tokens and bank‑like payment services. Critics worry such moves could blur the line between regulated banking services and privately issued payment tokens, creating consumer protection, financial stability, and oversight challenges.
Warren requested specifics about how X Money will operate, its relationships with banking partners, the source of promised yields, data handling and monetization practices, and what disclosures prospective users will receive about deposit protections. The letter seeks documentation and explanations intended to clarify operational, regulatory, and consumer‑protection implications before a broader rollout.
The inquiry comes as X continues to develop payments and financial features — part of a broader push by some tech platforms to add payments, trading, and “everything app” functionality. Lawmakers and regulators are actively debating how to apply existing banking and consumer‑protection rules to these new offerings and whether additional statutory limits or safeguards are needed.