Sen. Elizabeth Warren has formally alerted Elon Musk about national security, privacy, and financial stability risks tied to X Money, the forthcoming payments feature on X, urging careful consideration of consumer protection.

As ranking member of the Senate Banking Committee, Warren presses Musk and his companies over X Money, highlighting consumer protection, privacy, and broader financial-system risks.

In a detailed inquiry, Warren questions potential stablecoin and crypto integrations within X Money and their implications for financial stability and U.S. national security.

The discussion unfolds against broader regulatory and political shifts, including changes at the CFPB and evolving oversight of new financial products.

Warren notes that X Money’s beta reportedly offers high 6% deposits via Cross River Bank, and she questions sustainability of such yields given current interest rates and the bank’s enforcement history.

There is ongoing debate about crypto payments in X Money; no definitive crypto features are confirmed, though loans, money market accounts, and crypto integration have been discussed.

The coverage also mentions Tesla stock momentum, but regulatory concerns around X Money remain the core focus.

Warren points to a perceived GENIUS Act carveout that could let private firms issue stablecoins without typical approvals, raising alarms about private issuance.

She argues that CFPB oversight of digital payment apps has weakened under recent regulatory changes, potentially affecting X Money’s regulation and compliance.

The Verge sought comment from X but had no immediate response at publication.

Warren cites past safety issues at X, including content concerns with Grok AI, as indicative of broader risks if the platform expands into consumer finance.

X Money, launched in a limited Visa-backed beta, aims to be part of Musk’s ‘everything app’ vision and has introduced features like smart cashtags for integrated trading.