Summary
BroadChain learned that at 06:16 on April 18, according to Bitcoinist, U.S. Senator Elizabeth Warren, a member of the Senate Banking Committee, sent a letter to Elon Musk expressing serious concerns about the X Money payment platform's planned launch in April, warning that it could threaten financial stability and national security. Warren pointed out that Cross River Bank, which X Money intends to partner with, faced severe enforcement action from the FDIC in 2023 for unsafe and unsound practices; its promotional materials indicate that deposit accounts could offer an annualized yield of up to 6%, but with the federal funds rate at 3.75%, the source of this yield is unclear, raising suspicions of high-risk investments. Warren also questioned X platform's past record, including
According to BroadChain, at 06:16 on April 18, Bitcoinist reported that U.S. Senator Elizabeth Warren, a member of the Senate Banking Committee, sent a letter to Elon Musk expressing serious concerns about X Money's payment platform, which is scheduled to launch in April, warning that it could threaten financial stability and national security. Warren pointed out that Cross River Bank, which X Money plans to partner with, faced severe enforcement action from the FDIC in 2023 for unsafe and unsound practices. Its promotional materials indicate that deposit accounts could offer an annualized yield of up to 6%, but with the federal funds rate at 3.75%, the source of this yield is unclear, raising suspicions of high-risk investments. Warren also questioned X's past record, including allowing sanctioned entities such as Hezbollah and the Houthis to purchase verified accounts and raise funds, as well as systemic failures in handling child sexual abuse material, data privacy violations, and fraud by verified users. She specifically mentioned provisions in the GENIUS Act that could provide regulatory exemptions for companies like X to issue stablecoins and demanded that Musk respond in writing by April 21 regarding the product risks. Meanwhile, cryptocurrency commentator Tat Thang noted that X Money and its suite of financial products, including the already launched Smart Cashtags real-time asset data feature and brokerage routing services operated through Wealthsimple, pose a significant threat to fintech companies like Robinhood. With X platform boasting 550 million monthly active users, its built-in "good enough" financial products already hold a significant competitive advantage.
