Senator Elizabeth Warren has raised fresh concerns about the planned launch of X Money, a financial service tied to the social platform owned by Elon Musk. In a letter sent Tuesday, the Massachusetts Democrat warned that the initiative could pose risks to consumers and the broader financial system. The concerns come as Musk moves forward with his vision of transforming X, formerly known as Twitter, into a multi-purpose platform that integrates financial services. The proposed April launch marks a significant step toward that goal. Regulatory and Consumer Risks Highlighted Warren’s letter questions whether X can safely manage financial services. She pointed to past operational issues on the platform as a reason for caution. The senator argued that the company’s track record does not inspire confidence in its ability to handle sensitive financial data or transactions. She warned that consumers, national security, and financial stability could be at risk if proper safeguards are not in place. Warren also cited concerns about harmful content on the platform, including issues linked to its AI chatbot Grok. These problems, she said, raise doubts about oversight and accountability. The senator emphasized that financial platforms require strict compliance standards. She argued that any failure in risk management could have wider consequences beyond individual users. Her letter reflects ongoing scrutiny of large technology firms expanding into financial services. Ambitions for an “Everything App” Musk has repeatedly outlined his plan to turn X into what he calls an “everything app.” The concept includes messaging, social media, and financial tools in a single ecosystem. According to Warren, Musk has suggested that X could eventually replace traditional banking for many users. X Money is expected to play a central role in that strategy. Early materials suggest users may earn returns of up to 6% APY on deposits. This figure stands above the current Federal Reserve benchmark rates, drawing attention from regulators. Warren raised questions about how such returns would be sustained. She suggested that higher yields could signal increased risk-taking. The senator also warned that users may not fully understand the terms or protections tied to these accounts. X has already secured multiple state money transmitter licenses through its subsidiary, X Payments. These approvals allow the company to operate in several jurisdictions. Still, Warren stressed that licensing alone does not guarantee strong consumer protection.
