U.S. Senator Elizabeth Warren, Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to Elon Musk raising concerns about the April launch of X Money and warning that consumers, national security, and financial stability could be at risk. The letter links the product launch to Musk’s prior efforts with Acting Consumer Financial Protection Bureau Director Russ Vought to dismantle the Consumer Financial Protection Bureau, arguing that the combination warrants immediate Congressional attention. The letter points to X’s stated ambition to build an “everything app” with integrated financial services and notes that X has obtained 40 state money transmitter licenses. Based on screenshots and descriptions Musk retweeted, Warren wrote that X Money may partner with Cross River Bank, which was subject to Federal Deposit Insurance Corporation enforcement actions in 2023 for unsafe and unsound practices related to fair lending and in 2018 for unfair and deceptive practices. Preview materials also suggest users may be able to earn up to 6% annual percentage yield on deposit accounts, and the letter questions how that yield would be funded given a target federal funds rate of 3.5% to 3.75%, citing the potential for risky investments, intrusive data monetization, or other “gimmicks.” Separately, the letter cites X’s record on platform misuse and controls, including allowing sanctioned individuals to buy verified accounts and raise funds, and failures to address child sexual abuse material, data privacy violations, and fraud by verified users. Warren also flagged the risk of Musk influencing the regulatory environment for his own product if X Money includes stablecoin issuance, pointing to what she described as a carveout in the GENIUS Act that would enable private commercial companies to issue a stablecoin without some approvals and guardrails that would apply to similarly situated public commercial companies. The letter requests written responses detailing Musk’s plans for X Money and associated risks by 21 April 2026.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2026-04-14
U.S. Senate Committee on Banking, Housing and Urban Affairs Ranking Member Warren warns Elon Musk over X Money launch and seeks responses by 21 April 2026
U.S. Senator Elizabeth Warren, Ranking Member of the Senate Banking Committee, has written to Elon Musk warning that the launch of X Money could pose risks to consumers, national security, and financial stability, and calling for immediate Congressional scrutiny. The letter raises concerns about X’s “everything app” ambitions, its money transmitter licensing, potential partnership with Cross River Bank, promised yields of up to 6% APY on deposits, X’s record on platform misuse and controls, and possible stablecoin issuance under what she describes as a favorable carveout in the GENIUS Act.