On the Eve of X Money's Launch, Musk Dismantles the Referee First
"X Money Launches After Dismantling Regulator: Musk's 9-Day Power Play"
In February 2025, a team from the "Department of Government Efficiency" (DOGE), led by Elon Musk, entered the Consumer Financial Protection Bureau (CFPB) headquarters. Shortly after, the CFPB was effectively dismantled—its funding frozen, activities suspended, and nearly 90% of staff laid off. This move came just nine days after X announced a partnership with Visa and as X Money prepared to launch.
The article contrasts this with the decade-long regulatory battles faced by companies like Coinbase and PayPal. Coinbase spent over $75 million in political contributions and endured a major SEC lawsuit to operate legally. PayPal complied with strict state and federal rules for its stablecoin PYUSD, including 100% reserve requirements and monthly audits.
However, Musk’s approach was different. After the CFPB introduced a rule placing large digital payment apps under federal oversight, Musk tweeted "Delete CFPB." Within months, the rule was revoked by Congress. Meanwhile, DOGE operatives gained "god-tier" access to CFPB databases, potentially obtaining sensitive competitive information from rivals like Apple, Google, and PayPal.
The article also highlights a "suspicious exemption clause" in the GENIUS Act, which allows private companies like X to issue stablecoins with fewer restrictions. Senator Elizabeth Warren questioned whether Musk, who was a senior presidential advisor during the Act’s drafting, influenced this clause. X Money offers a 6% APY on deposits, despite FDIC warnings that stablecoin users are not insured.
As X Money launches to 600 million monthly users, the article questions the fairness of a system where Musk can bypass regulations that others spent years and millions to comply with. The dismantling of the CFPB and the alleged regulatory advantages raise concerns about the future of equitable rule-making in the U.S. financial system.
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