Recently, Elizabeth Warren, known for her criticism of the crypto sector, sent a letter to Elon Musk with questions about X Money plans — a payment feature they intend to embed into the social network X. The senator is concerned that integrating stablecoins could pose risks to the US financial system and national security.

In her letter, Elizabeth Warren raises several sharp questions. First, she asks whether the platform can issue its own stablecoin under the GENIUS law, which allows private companies to do so. Second, she points to the beta preview of X Money, where they promise 6% on deposits in partnership with Cross River Bank — a bank that has already attracted the attention of the FDIC regulator.

Elizabeth Warren expresses skepticism about how the platform could provide such returns, especially when the federal rate is at 3.5-3.75%. It is reasonable to assume that this would require risky investments or monetization of user data. Additionally, the senator is concerned about deposit protection: are users aware that their funds will not be covered by FDIC insurance in case of problems?

In March, FDIC Chairman Travis Hill clarified the official position: stablecoin deposits are not subject to standard FDIC insurance under the GENIUS law. However, there is a loophole — the so-called pass-through insurance, which could extend coverage up to $250,000 per customer. Hill noted that although the law does not prohibit stablecoin companies from offering such insurance, it would be "inconsistent" with the overall regulatory framework.

Elizabeth Warren’s stance may indicate a broader legislative rollback against private companies seeking to issue dollar-pegged tokens. It is clear that regulators are closely monitoring how tech giants are entering the financial sector.