There’s a bit of interesting movement going on, as Elon Musk has officially announced X’s payment currency service. The talk is that a new payment feature called X Money will launch next month.

The key point of this X payment currency announcement is that it brings peer-to-peer transfers, bank account linking, debit cards, and cashback rewards together into a single app. It’s partnering with Visa and is expected to roll out in more than 40 U.S. states. In other words, it’s like Venmo—social media with fintech features attached.

Right after the announcement, Dogecoin temporarily jumped. Everyone thought, “Oh, crypto integration might be coming.” But this is a pattern that keeps repeating. Since 2021, whenever Musk has mentioned X payments, DOGE has surged sharply. However, when you look at the actual details of the X payment currency announcement, it’s a product dedicated entirely to fiat. It’s not a crypto wallet, but a payment service for fiat currency only. Currently, DOGE is at $0.11, up 1.27% over the past 24 hours. Bitcoin is at $81.02K, up 0.08% or so.

What I personally find especially noteworthy is the 6% yield that X Money is proposing. That’s almost higher than nearly all U.S. ordinary savings accounts—on par with money market funds in terms of competition. From a regulator’s perspective, this is a situation they can’t take their eyes off.

The timing is also perfect, as Congress is currently divided over the CLARITY Act. The key sticking point of this bill is setting rules for stablecoin products that generate yield. The focus is on whether non-bank platforms should be allowed to offer consumer deposit-like yields.

X Money isn’t a stablecoin product, but in effect it captures the same demand through a different regulatory route. If X Money rolls out in full before the CLARITY Act passes, it will create a rather awkward comparison—because a fiat product inside a social media app could end up offering higher yields than regulated crypto-asset stablecoin products.

As for the broader market, tensions in Iran are escalating, pushing up oil prices and the U.S. dollar, putting pressure on risk assets overall. Bitcoin did rise once from $80,700 to $82,400, but it has reversed. In times like this, it’s important to keep an eye on both regulatory developments and the macro environment.