X Ordered to Cut Interest on X Money Balances for NY Users

X, owned by Elon Musk, has been informed by New York's financial regulator (NYDFS) that it cannot pay interest on X Money balances belonging to New York customers. As of October 1, 2026, the yield on such accounts will drop to 0.00%. This decision comes after X never obtained a New York license.

X Money was launched across the country barely weeks ago and relied heavily on its yield as a marketing tool to attract users. The service offered users a metal Visa debit card linked to their X handle, no fees on peer-to-peer transfers, and Apple Pay and Google Pay support.

The NYDFS has been strict in its operation, earning it the reputation of being an international standard setter for digital asset regulation. State Senator Brad Hoylman-Sigal and Assembly member Micah Lasher encouraged the NYDFS to deny X a money transmitter license in May 2025 due to concerns about Musk's conduct at DOGE and X's management of consumer data.