Twitter/X has been going state-by-state obtaining money transmitter licenses. The social media platform is now approved in 12 states.
For the last year or so Elon Musk has made clear his intention to build a financial super app to augment the platform’s ad-based revenues. But this move is not going to be easy.
While many major tech companies have been expanding into financial services in recent years, regulators are looking more closely today than ever before at these arrangements.
We have already seen the Financial Stability Oversight Council (part of the Treasury Department) approve a new framework for regulating non-bank financial companies and the CFPB is also looking to expand its oversight powers here.
Given what a lightning rod Elon Musk is, it will be a harder road for X than it could have been. Finance is built on stability and trust and few people would associate those two words with X right now.
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X’s Money Movement Push Comes as Regulators Warn of Risks
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X/Twitter now has money transmitter licenses in a dozen states as it gears up for super app status, but can it build enough trust to gain users?
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