Warren Warns X Money Threatens Financial Stability, Flags GENIUS Act Stablecoin Carveout for Musk

Senator Warren sent a letter to Musk ahead of X Money's April launch warning the platform risks "consumers, national security, and the stability of the financial system." X Money is promising 6% APY on deposits — nearly double the current fed funds rate — through a partnership with Cross River Bank, which has faced FDIC enforcement actions for unsafe practices. Warren also flagged a "suspicious carveout" in the GENIUS Act that could let private companies like X issue stablecoins without standard regulatory guardrails, all while the CFPB that would normally police consumer fintech products has been gutted under Musk's own DOGE initiative.

TLDR by @Benthic

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