Senator Warren opposes resolution favoring Elon Musk's X Money platform

U.S. Senator Elizabeth Warren has urged her colleagues to vote against a resolution that could potentially benefit Elon Musk by allowing him to issue his own stablecoin, X Money, without consumer protection measures. Speaking on the Senate floor, Warren criticized the Congressional Review Act resolution concerning the Consumer Financial Protection Bureau (CFPB) larger participants rule.

The rule in question enables the CFPB to supervise nonbank companies offering digital payment services such as Venmo and CashApp. According to Warren, it is crucial for preventing fraud and protecting consumer privacy. She stated, "Vote yes if you want more Americans to get scammed, vote no if you don’t."

Warren emphasized that three-quarters of Americans use digital payment platforms and have been affected by scams. The CFPB's new rule aims to address these issues by providing stronger protections.

Warren accused Musk of wanting weaker rules against scamming so that his new digital payment platform would not be subject to CFPB review. She remarked, "He wants what amounts to a Get-Out-of-Jail-Free for Elon card."

In her speech, Warren described a scenario where blocking the CFPB rule would remove financial oversight from Musk’s app operations. She expressed concern about upcoming legislation that might enable Musk to issue X Money as his stablecoin without necessary safeguards.

The senator concluded with a call for her colleagues to oppose giving billionaires like Musk free rein over financial systems: "I urge my colleagues to vote no."