Senator Warren Raises Concerns Over X Money’s April Launch
- Senator Elizabeth Warren expressed concerns about the potential risks to consumer protection, national security, and financial stability from X Money’s planned launch in April.
- X Money has acquired licenses to operate as a money transmitter in 40 states and plans to offer deposit accounts with up to a 6% APY.
- Warren criticized a “suspicious carveout” in the GENIUS Act, which she argues benefits private companies like X in issuing stablecoins.
- Concerns were also raised about X Money’s potential partnership with Cross River Bank, which has faced FDIC enforcement actions for unsafe lending practices.
Senator Warren highlighted several risks associated with X Money’s launch, including its high interest rates on deposits and regulatory advantages under the GENIUS Act. Her scrutiny comes amid a changing regulatory environment.
Warren’s letter underscores significant apprehensions regarding the impact of X Money on financial stability and consumer safety due to its operational strategies and partnerships. (Source)
