After Musk Decimates CFPB, Blumenthal Raises Consumer Protection Concerns over X Money Venture.

[WASHINGTON, D.C.] – U.S. Senator Richard Blumenthal (D-CT), Ranking Member of the U.S. Senate Permanent Subcommittee on Investigations, yesterday wrote to Visa Chief Executive Officer Ryan McInerney raising concerns over the company’s partnership with Elon Musk’s X to launch a new peer-to-peer (P2P) payment platform, X Money. Blumenthal is seeking documents and information related to X and Visa’s new venture after Musk, in his capacity as leader of the Department of Government Efficiency (DOGE), gutted the Consumer Financial Protection Bureau (CFPB)—one of X Money’s key regulators—and gained access to sensitive data that could give X Money visibility into its competitors’ trade secrets, corporate strategy, and pending licenses.

Pointing to X’s inability to stem the proliferation of bots, scams, and hate speech on its site, Blumenthal wrote, “These concerns raise questions about X’s ability to protect consumers from fraud and scams as it ventures into the financial sector. As the largest payment processor in the world, Visa has a legal responsibility to ensure its network is free of financial crime such as scams and fraud, money-laundering, terrorist financing, and more.”

Blumenthal continued, “While Elon Musk holds a key leadership role at X, he also leads DOGE, operating with the official status of ‘special government employee.’  In recent weeks, DOGE and the Trump Administration have taken deliberate steps to target the CFPB to diminish its ability to perform critical oversight of the financial services sector, including digital platforms like X Money.”

“DOGE’s actions to diminish the enforcement reach of the CFPB could boost Visa’s new business interests with X Money. Equally troubling is the possibility that DOGE and Mr. Musk could use their access to CFPB’s systems to gain a competitive advantage for Mr. Musk’s business interests, in particular X Money,” Blumenthal continued.

Blumenthal concluded by raising concerns that the proliferation of bot accounts on X under Musk’s leadership could put consumers at risk, “Signs of increased ‘active bot-like accounts’ were also found on the platform since Musk’s acquisition. The most pronounced indicators for bots were found around ‘a large upswing in posts promoting cryptocurrency,’ which may increase risks of financial scams. In October 2023, the Federal Trade Commission reported that more money was lost to fraud originating on social media than by any other method of contact, calling it “a golden goose for scammers.”

As PSI Ranking Member, Blumenthal has launched an inquiry into Musk and his Department of Government Efficiency (DOGE). Blumenthal has written to all six of Musk’s companies, urging them to preserve records related to government activities as Musk exploits his White House position for financial gain and seeks to consolidate power. Thus far, Musk’s companies—including X—have refused to commit to preserving these records and have failed to address Musk’s glaring conflicts of interest. Blumenthal’s letters to Musk’s companies are available here. Responses from Musk’s companies and follow-up letters from Blumenthal are available here.

Blumenthal’s letter to Visa is available here and below.

Dear Mr. McInerney:

On January 28, 2025, X Corp. announced a partnership with Visa Inc. to launch X Money, a new venture that would provide X users with access to a mobile wallet and offer them the ability to make peer-to-peer (P2P) payments.[1] Given the unique position of X Chairman and Chief Technology Officer Elon Musk as leader of the Department of Government Efficiency (DOGE), and his recent role in gutting the Consumer Financial Protection Bureau (CFPB), one of X Money’s key regulators, Visa stands to take advantage of the deep conflicts of interest and unscrupulous conduct of its new business partner.[2] This announcement also comes as X faces broad criticism regarding its inability to stem the proliferation of bots, scams, and hate speech on its site.[3] These concerns raise questions about X’s ability to protect consumers from fraud and scams as it ventures into the financial sector.[4] As the largest payment processor in the world, Visa has a legal responsibility to ensure its network is free of financial crime such as scams and fraud, money-laundering, terrorist financing, and more.[5] For these reasons, and pursuant to Senate Resolution 59 (118th Cong.), the Permanent Subcommittee on Investigations (“PSI” or “the Subcommittee”) writes to request information and documents related to the planned partnership between Visa and X.

While Elon Musk holds a key leadership role at X, he also leads DOGE, operating with the official status of “special government employee.”[6] In recent weeks, DOGE and the Trump Administration have taken deliberate steps to target the CFPB to diminish its ability to perform critical oversight of the financial services sector, including digital platforms like X Money.[7] Shortly after President Trump’s inauguration, DOGE employees moved into the CFPB’s headquarters and blocked employees from accessing the building.[8] Russell Vought, the newly confirmed Director of the Office of Management and Budget, was appointed as Acting Director of the CFPB, whereupon he immediately ordered staff to halt all work, including supervision and enforcement.[9] Within days, Mr. Vought began terminating employees, including a team of subject matter experts who focused on big tech’s entry into financial services.[10] Vought also indefinitely delayed a new rule that would give the agency authority to regulate tech companies that facilitate over 50 million consumer payments per year, which could eventually apply to X Money.[11]

DOGE’s actions to diminish the enforcement reach of the CFPB could boost Visa’s new business interests with X Money. Equally troubling is the possibility that DOGE and Mr. Musk could use their access to CFPB’s systems to gain a competitive advantage for Mr. Musk’s business interests, in particular X Money. In following its mission to ensure “consumer financial products are transparent, fair, and competitive,” the CFPB has collected data on the business practices of other peer-to-peer payment platforms in recent years.[12] With the DOGE team gaining access to what a former CFPB official described as “god-tier” data privileges at the agency, such sensitive information, if improperly maintained or disclosed, could offer X Money visibility into its competitors’ trade secrets, corporate strategy, pending licenses, data pertinent to anti-money laundering regulations, and much more.[13]

Following Musk’s purchase of X in 2022, hate speech has flourished on the platform and bot activity remains elevated.[14] A February 2025 study found that in the first eight months after Musk purchased the app, the rate of hate speech on X rose 50% while “likes” of hate posts rose by 70%.[15] Signs of increased “active bot-like accounts” were also found on the platform since Musk’s acquisition.[16] The most pronounced indicators for bots were found around “a large upswing in posts promoting cryptocurrency,” which may increase risks of financial scams.[17] In October 2023, the Federal Trade Commission reported that more money was lost to fraud originating on social media than by any other method of contact, calling it “a golden goose for scammers.”[18]

1. A detailed description of Visa’s plans to offer X Money to consumers in collaboration with X, including but not limited to:
1. When the possibility of an agreement between Visa and X to develop X Money first arose;
2. The anticipated duration of the agreement between Visa and X to offer X Money;
3. The anticipated timing when X money will become available to users;
4. Criteria for determining eligibility to use X money, including but not limited to bank account requirements, geographic limitations, or other required enrollment criteria;
5. The process for users to access X Money, including but not limited to whether X money will be an opt-in or opt-out feature for X users;
6. The proposed business model for X Money, including any fees to be assessed on X users; and
7. All services Visa will provide through its partnership to create X Money, including but not limited to its role in:

1. 1. 1. Design and implementation;
      2. Operations and customer support;
      3. Bank Secrecy Act (BSA) compliance;
      4. Electronic Fund Transfer Act (EFTA) compliance;
      5. Know Your Customer (KYC) due diligence; and
      6. Detecting or disrupting coordinated inauthentic activity (bots).

2. A detailed description of all measures undertaken by Visa to determine whether any Visa or X personnel have obtained sensitive data or other non-public information about other peer-to-peer platforms from any personnel at DOGE or the CFPB.

In addition, please provide the Subcommittee with the following records by March 21, 2025.

1. All records referring or relating to agreements between Visa and X pertaining to X Money, including any letters of intent, memoranda of understanding, service agreements, or any other records.
2. All of Visa’s policies and procedures for preventing the improper use or disclosure of confidential information of competitors.
3. All of Visa’s policies and procedures for deterring and detecting criminal activity on peer-to-peer payment applications, including but not limited to X Money.
4. All communications referring or relating to X Money between any Visa personnel and X personnel, including but not limited to Executive Chairman and Chief Technology Officer of X, Elon Musk.
5. All communications referring or relating to X Money between Visa personnel and CFPB personnel.
6. All communications referring or relating to X Money between Visa personnel and DOGE personnel, the Trump administration, or the Trump transition team since November 5, 2024.

Please contact the Subcommittee should you have any questions about responding to these requests. Thank you for your attention to this matter.

                                                                        Sincerely,

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