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Warren Presses Musk Over X Money Ahead of April Launch

Unclear crypto features and a 6% yield pitch have regulators questioning consumer safeguards.

Overview

  • X’s head of product Nikita Bier, who posted Tuesday that the company might “launch something” to help crypto, saw the market jump soon after, with Bitcoin near $75,000 and Dogecoin also rising.
  • Elon Musk says early public access to X Money is coming this month after testing, with peer-to-peer transfers, a metal Visa debit card, and a savings wallet advertising 6% APY.
  • Product materials and early-user screenshots indicate deposits would be held at Cross River Bank and that X Payments holds money transmitter licenses in more than 40 states and Washington, DC.
  • Senator Elizabeth Warren sent a letter Tuesday giving Musk until April 21 to detail how X Money will address risks to consumers, national security, and financial stability.
  • Warren flagged Cross River Bank’s past FDIC enforcement actions and asked whether X plans a stablecoin or will monetize transaction data, while X has not confirmed any crypto rails despite recent crypto-focused hires.