Elon Musk is under scrutiny from Senator Elizabeth Warren over his upcoming payments platform, X Money. In a letter addressed to Musk, Warren highlights concerns around consumer safety and financial stability, pointing to past issues with X’s operations.
Musk announced that X Money will launch public access in April but has not disclosed many specifics about the platform. Former CEO Linda Yaccarino hinted at features like Visa Direct integration for X Wallets and debit card connections for peer-to-peer transactions.
Warren’s letter underscores these concerns, citing past criticism of X over child sexual abuse material circulation and sanctions violations. She also references recent regulatory issues with Cross River Bank, which may hold deposits for X Money users. The senator calls out Musk on the dismantling of the Consumer Financial Protection Bureau and its impact on oversight.
Musk has until April 21st to respond to Warren’s questions, including details about Cross River Bank’s role, plans for stablecoins, and data privacy concerns. The outcome could set a new standard—or at least a regulatory hurdle—for AI-driven financial services.
