Warren Warns X Money Could Risk Consumers, Stablecoin Oversight

Sen. Elizabeth Warren, the Senate Banking Committee’s ranking member, wrote to Elon Musk on April 14 warning that the planned April launch of X Money could threaten consumer protection, national security, financial stability and the integrity of stablecoin oversight. The letter asks for detailed information about the product and its rollout.

Warren requested written responses by April 21 covering X Money’s features, launch plans, consumer protections, national security safeguards and any relationships with banks or crypto service providers. The senator wrote: “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.”

The letter flagged crypto-related concerns, including whether X Money will issue or support a stablecoin. Warren said the GENIUS Act, passed while Musk served as a senior adviser to the president in 2025, contains what she described as a “suspicious carveout” that could allow private firms to issue a stablecoin without the approvals and safeguards required of public companies. She asked Musk to explain how any stablecoin issuance would meet regulatory requirements.

Warren noted that X obtained money transmitter licenses in 40 states ahead of the launch and asked for information about potential banking partners. The letter referenced screenshots and descriptions suggesting X may work with Cross River Bank for some services and cited Federal Deposit Insurance Corporation enforcement actions against Cross River in 2023 related to unsafe or unsound practices tied to fair lending and an earlier 2018 action for unfair and deceptive practices.

Preview materials cited in the letter indicated deposit accounts offering up to 6% APY, while the federal funds target range stands at 3.5% to 3.75%. Warren pointed to operational issues on the platform, including instances where people tied to sanctioned groups obtained verified accounts and solicited funds, reports of child sexual abuse material, data privacy lapses and widespread fraud by verified users.

Musk posted on X on March 10 that “X Money early public access will launch next month.” The post included no details about custody, wallet integration or whether crypto, dogecoin support or a proprietary stablecoin will be included. X has recently added interactive Cashtags for iPhone users in the U.S. and Canada that display real-time stock and crypto prices, charts and related content.

Warren asked regulators and lawmakers to review how a large social platform will handle payments, deposits and crypto assets and urged transparency about X Money’s operations and safeguards.