Elizabeth Warren Criticizes Musk, Sends Probing Questions About X Money

U.S. Senator Elizabeth Warren has expressed concerns and sent probing questions to Elon Musk regarding X Money, a planned payments feature for the X social media platform. Warren, a vocal critic of private companies issuing stablecoins, fears that X Money's potential stablecoin and crypto integrations could pose risks to the U.S. financial system and national security. She specifically inquired if X Money would issue its own stablecoin, potentially under a legal "carveout" in the GENIUS Act that allows private companies to do so. Warren also highlighted that X Money's beta preview suggests a 6% interest on deposits, partnering with Cross River Bank, which has faced regulatory action from the FDIC. She questioned how such a high yield would be paid, given the current Federal Funds Rate. Furthermore, Warren sought clarification on whether X Money users would be aware that stablecoin deposits are not protected by FDIC insurance, a point previously clarified by FDIC Chair Travis Hill, who stated that payment stablecoins are not subject to deposit insurance under the GENIUS Act.

(Source：Cointelegraph)