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U.S. Senator writes to Musk regarding X Money, questioning stablecoin plans and user protections
Deep Tide TechFlow news. On April 16, according to Cointelegraph, U.S. Senator Elizabeth Warren sent a letter to Musk, asking for an explanation of X’s plan to integrate stablecoins and cryptocurrencies into its planned payment feature, X Money, and saying this could pose risks to the financial system and U.S. national security. Warren specifically questioned whether X Money would issue its own stablecoin based on relevant exemptions under the GENIUS Act, and whether users are sufficiently informed that their funds are not protected by FDIC deposit insurance. The letter also said that X Money’s test preview indicates it may offer a 6% deposit interest rate, and that it is partnering with Cross River Bank, which has previously been subject to FDIC enforcement actions.