Elizabeth Warren warns X Money may bypass stablecoin guardrails
Private commercial companies like X may issue stablecoins without the required approvals and guardrails that apply to public commercial companies. This is possible because of a carveout in the Genius Act. The carveout enables private commercial companies to issue a stablecoins without the same regulatory oversight. Senator Elizabeth Warren warned in a letter to Elon Musk that X Money, a forthcoming payment feature, may use this carveout. X has secured money transmitter licenses in over three dozen US states. Elon Musk has stated that X Money will debut in the debut in April. X Money may include stablecoins and other crypto assets.
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