Senator Elizabeth Warren has raised alarms over the 6% yield on deposits promised by X Money, a new payments feature linked to the X social media platform. In a recent letter to Elon Musk, she expressed skepticism about the sustainability of such high returns in the current economic climate, as emphasized in the official statement.
Warren's Concerns About X Money
Warren's letter emphasizes the potential risks that customers may face, questioning whether they fully understand the implications of investing in X Money. She pointed out that the current federal funds rate raises doubts about the viability of offering such a lucrative yield.
Cross River Bank Under Scrutiny
Additionally, Warren flagged Cross River Bank, the financial institution partnered with X Money, citing its history of enforcement actions by the Federal Deposit Insurance Corporation (FDIC) as a significant concern. This inquiry is part of Warren's broader critique of the cryptocurrency sector and Musk's business practices, highlighting the need for greater regulatory scrutiny in the rapidly evolving financial landscape.
Senator Elizabeth Warren previously expressed concerns regarding the Department of Defense's decision to grant Elon Musk's xAI access to sensitive military networks, highlighting potential national security risks. For more details, see read more.
