Elizabeth Warren Warns Elon Musk's X Money Threatens 'Stability of the Financial System'

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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.”Warren noted that since acquiring Twitter and rebranding it as X, Musk has openly pursued building an "everything app" that would handle users' "entire financial world." She cited his statements that X could "become the biggest financial institution in the world" and eliminate the need for traditional bank accounts."Your failure to operate X in a safe and responsible manner does not breed confidence in your ability to safely expand into consumer finance," the Senator wrote, highlighting issues with X including the production of child sexual abuse material by the platform’s AI chatbot Grok.X has already secured a slew of state money transmitter licenses for the payment platform through its subsidiary X Payments. Preview materials indicate that users can earn up to 6% APY on deposit accounts—significantly above the current Federal Funds Rate range of 3.5-3.75%, the Senator noted.Warren expressed particular concern about the potential of X Money partnering with Cross River Bank, which faced FDIC enforcement actions in both 2018 and 2023 for “unsafe” lending practices and “unfair and deceptive practices.”Her scrutiny of X Money arrives amid a transformed regulatory landscape. During Musk's tenure as senior adviser to President Trump, Warren noted, the administration worked with Acting CFPB Director Russ Vought to fundamentally restructure the Consumer Financial Protection Bureau—the federal agency that would normally police consumer financial products like X Money.The Trump administration has also enacted the GENIUS Act, legislation Warren argues has created a “suspicious carveout” for private companies like X to issue stablecoins without the “required approvals and guardrails” that apply to public commercial companies.Launched in a “very limited access beta” in partnership with Visa last year, X Money is a cornerstone of Musk’s ambition to transform X into an "everything app" with integrated financial services. Earlier this year, the platform added “smart cashtags,” enabling users to “to trade stocks and crypto directly from timeline,” according to the firm’s Head of Product NIkita Bier. At the time, Bier clarified that, “X is not handling trade execution or acting as a brokerage,” adding that the firm is “just building the financial data tools and links.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersNFLX Netflix, Inc. 107.79 +0.08 (+0.07%)AMD Advanced Micro Devices, Inc. 278.26 +20.14 (+7.80%)GE GE Aerospace 298.29 -15.64 (-4.98%)BTC-USD Bitcoin USD 75,098.06 +263.70 (+0.35%)NVTS Navitas Semiconductor Corporation 12.37 +2.11 (+20.57%)PortfolioSign in to access your portfolioSign inTop gainersAXTI AXT, Inc. 81.78 +18.85 (+29.95%)XNDU Xanadu Quantum Technologies Limited 32.67 +7.49 (+29.75%)NN NextNav Inc. 21.49 +4.52 (+26.64%)NVTS Navitas Semiconductor Corporation 12.37 +2.11 (+20.57%)FLY Firefly Aerospace Inc. 44.17 +6.55 (+17.41%)Top losersIESC IES Holdings, Inc. 483.38 -45.84 (-8.66%)MANE Veradermics, Incorporated 74.12 -6.38 (-7.93%)MMED MiniMed Group, Inc. 14.02 -1.20 (-7.88%)SCHW The Charles Schwab Corporation 92.62 -7.65 (-7.63%)MAIN Main Street Capital Corporation 53.46 -4.37 (-7.56%)Most activeNVDA NVIDIA Corporation 198.35 -0.52 (-0.26%)INTC Intel Corporation 68.50 +3.56 (+5.48%)QBTS D-Wave Quantum Inc. 21.52 +0.71 (+3.41%)GRAB Grab Holdings Limited 4.0200 +0.1000 (+2.55%)SNAP Snap Inc. 6.02 -0.02 (-0.33%)Top economic eventsEarnings eventsMy earnings eventsEarnings events