Warren Warns Musk on X Money Security Risks

U.S. Senator Elizabeth Warren has warned Elon Musk that the upcoming launch of X Money, a financial service integrated into the social media platform X, could endanger consumers, national security, and the stability of the financial system. In a letter sent Tuesday to the chief executive of X Corp., the Massachusetts Democrat, who chairs the Senate Committee on Banking, Housing, and Urban Affairs, demanded detailed responses by April 21 on the service's operations and safeguards.

Warren's concerns center on X Money's planned April rollout, which aims to enable payments and potentially incorporate cryptocurrencies and stablecoins within X's ecosystem. The platform, formerly Twitter, has acquired money transmitter licenses in about 40 states through its subsidiary X Payments, allowing it to process transactions in those jurisdictions. Preview materials indicate users could earn up to 6 percent annual percentage yield on deposits, a rate exceeding the Federal Reserve's target range of 3.5 to 3.75 percent. Warren questioned how such returns would be funded sustainably, suggesting they might involve risky investments or other practices that could heighten vulnerabilities.