An interesting moment occurred at the intersection of policy and crypto. Elizabeth Warren, known for her criticism of Musk and the crypto sector, decided to personally reach out to him with questions about X Money—a payment feature they plan to embed into the X platform.

The essence of Warren’s concerns comes down to several key points. First, she is worried that X Money could become a stablecoin, which would allow the platform to directly compete with financial institutions. The GENIUS Act in the U.S. is precisely what creates that possibility for private companies. Second, Warren points out that in the beta version of X Money, they promise 6% on deposits—significantly higher than current federal funds rates (3.5–3.75%)—which raises questions about how the platform plans to ensure such returns.

Another issue is that X Money is expected to collaborate with Cross River Bank, which has already run into problems with regulators. Elizabeth Warren emphasizes the risk that the platform could make risky investments—or even monetize users’ data—in order to deliver the promised interest.

Warren is especially critical of the protection of deposits. If X Money fails, users’ deposits would not be covered by FDIC insurance—a fact was clearly clarified by FDIC Chair Travis Hill in March. Although, technically, the law does not prohibit pass-through insurance, Hill called this decision “inconsistent” with the broader regulatory framework.

Elizabeth Warren’s position reflects a wider legislative backlash against tech companies issuing their own financial instruments. This could mark the beginning of a serious standoff between Musk and Congress over financial innovation.