I noticed an interesting point in U.S. politics around crypto. Elizabeth Warren, known for her criticism of Musk and the entire crypto industry, has approached him with questions about X Money. This is a payment feature they plan to embed into the social network X.

In her letter, the senator expresses serious concerns. Elizabeth Warren is worried about the risks that stablecoins and crypto integration could create for the financial system and national security. The question is whether the platform can issue its own stablecoin under the GENIUS law, which specifically allows companies to do so.

Here’s what especially caught Warren’s attention: the beta version of X Money promises 6% on deposits and is partnering with Cross River Bank. The problem is that this bank has already run into issues with the FDIC. She asks a logical question—where does such a return come from, if Federal Reserve rates are currently in the 3.5-3.75% range? That suggests potentially risky investments or data monetization.

Elizabeth Warren also raises a critical point about insurance. X Money users may not know that their deposits aren’t protected by the FDIC if something goes wrong. FDIC Chair Travis Hill clarified back in March that stablecoins are not covered by standard deposit insurance under the GENIUS law.

An interesting point: technically, the law does not prohibit companies from offering expanded FDIC insurance (up to $250,000 per customer), but Hill believes it would be “inconsistent” with the overall regulatory approach. It turns out that Warren and her stance reflect a broader trend—lawmakers are starting to slow down the idea that tech companies can simply issue stablecoins without serious oversight. It will be interesting to see how this story develops further.