X Money's 6% Deposit Yield Draws Regulatory Scrutiny; Warren Sends Letter to Musk Questioning Risks

BroadChain04/17/2026, 07:16 PM

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Summary

BroadChain learned that on April 17 at 19:16, according to Bitcoinist, X Money—the payments feature under X’s platform—has raised alarms in Washington with its promised 6% annualized deposit yield. Senator Elizabeth Warren sent a letter to Elon Musk on Tuesday questioning how such a yield is achievable amid the current federal funds rate of 3.5%–3.75%, and what risks it may entail. Warren noted that Cross River Bank—the partner bank for X Money—had previously been penalized by the Federal Deposit Insurance Corporation (FDIC), and asked whether the yield stems from high-risk investments, data collection, or other undisclosed operations. She also warned that X Money’s plans to enter stablecoins and cryptocurrency could threaten financial stability and national security.

BroadChain has learned that on April 17 at 19:16, Bitcoinist reported that X Money—the payment feature within the X platform—is facing scrutiny from Washington over its advertised 6% annual percentage yield (APY) on deposits. On Tuesday, Senator Elizabeth Warren sent a letter to Elon Musk questioning how such returns are possible while the federal funds rate stands at 3.5%–3.75%, and expressing concerns about potential risks. Warren pointed out that Cross River Bank, the partner institution behind X Money, had previously been penalized by the Federal Deposit Insurance Corporation (FDIC). She also asked whether the yields come from high-risk investments, data collection, or other undisclosed activities. Additionally, Warren warned that X Money’s plans to enter the stablecoin and cryptocurrency arena could pose risks to financial stability and national security, citing provisions under the GENIUS Act that allow non-bank entities to issue U.S. dollar-pegged tokens. In March, FDIC Chair Travis Hill confirmed that stablecoin deposits under the GENIUS Act are not federally insured. Warren is now calling for clear disclosure to users that their funds lack federal protection. Musk has yet to respond.