- Elon Musk’s alleged effort to integrate stablecoin payments into X through “X Money” faces mounting pressure as his public feud with Donald Trump escalates.
- As Trump gains influence among pro-crypto conservatives, losing that backing could leave Musk isolated just as legislative scrutiny ramps up against stablecoins.
- Companies like Uber and Airbnb are also reportedly investigating stablecoins’ potential to reduce costs and improve payment efficiency.
Elon Musk’s push to transform X into a financial services platform, complete with a potential stablecoin offering, has arrived at the billionaire’s worst possible political moment.
As lawmakers weigh sweeping legislation that could reshape the crypto industry, Musk now faces open hostility from former ally Donald Trump.
The fallout from their increasingly bitter public feud may not only threaten Tesla, which lost over $150 billion in market value, but also Musk’s grand ambitions to disrupt the digital payments and crypto space.
Musk’s Crypto Dreams
Musk’s plan to launch “X Money,” a peer-to-peer payments feature integrated with Visa, has already raised red flags among some in Washington.
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According to Fortune , X has contacted several crypto firms to explore integrating stablecoins, digital currencies pegged to the value of the U.S. dollar, into the upcoming service.
In a May 25 post on X, the world’s richest man confirmed that the platform had entered a “very limited access beta.”
He added, “When people’s savings are involved, extreme care must be taken.”
But with Congress now debating whether to limit tech firms’ use of stablecoins, the potential crypto integration could be off the cards.
Lawmakers, particularly Democrats, are pushing to ensure that digital currencies do not allow big technology companies to blur the line between commerce and banking.
In May, Democrats made a last-minute pushback to the Trump-backed GENIUS Act, which aims to provide more regulatory clarity over stablecoins used for payments.
Democrats have called for amendments to the regulation that would make it harder for tech firms to use stablecoins to get into financial services.
“If the GENIUS Act goes forward without changes, Donald Trump will continue to line his pockets with his crypto scams – while his policies continue to tank the economy for the rest of us,” Senator Elizabeth Warren said on May 5 .
For Musk, the timing couldn’t be worse. His once-close ties to Trump had helped blunt Republican criticism of his ventures, particularly around regulatory leniency and federal contracts.
Musk and Trump Feud May Damage Crypto Ambitions
Legal experts have begun to weigh in on the broader implications of the Trump–Musk fallout, especially as Congress edges closer to regulating stablecoins.
Joseph Osborne, a legal expert with Osborne and Francis, believes the timing of the rift could prove devastating for Musk’s ambitions in crypto.
“Can one billionaire’s feud with another derail an entire fintech ambition? In the world of crypto and politics: absolutely,” Osborne told CCN.
“While Musk’s vision for X as a financial platform is bold, political friction like this narrows his influence at a critical time,” Osborne said, noting that crypto legislation is no longer a theoretical debate.
Osborne also highlighted the shifting crypto politics within the Republican party.
“The stablecoin conversation in Congress is gaining momentum, and any credible entrant, especially one as high-profile as Musk, needs political allies, not adversaries,” he said.
“Trump’s crypto stance has warmed considerably, and he’s amassed a strong base among pro-crypto conservatives. Losing his informal endorsement could mean Musk faces added scrutiny and less cooperation, both formally and behind the scenes.”
With Congress likely to push for provisions around transparency and tight regulatory frameworks for any firm issuing stablecoins, Musk’s characteristically hands-off approach could face challenges.
“Stablecoin legislation will likely demand transparency, reserves, and regulatory oversight: none of which align seamlessly with Musk’s historically libertarian tech ethos,” Osborne said.
“Without bipartisan support or key backers like Trump, Musk may struggle to push through a financial product that needs public trust and political tolerance.”
In Osborne’s view, any path forward will require recalibration.
“To advance any stablecoin ambition, Musk must rethink his political alliances and possibly make strategic compromises in regulation and partnerships,” he said.
“Crypto is no longer the Wild West. Now, it’s entering the legislative mainstream. And without political capital, even Elon Musk may find himself locked out of the vault,” Osborne added.
Tech Firms and Stablecoins
The political battle is unfolding at a time when several major tech companies are exploring stablecoin integration.
Leading tech companies, including Uber, Apple, and Airbnb, have been exploring an entry into the crypto space amid Trump’s digital asset push but remain blocked by regulatory hurdles.
Uber CEO Dara Khosrowshahi recently noted that stablecoins could reduce cross-border costs, claiming the company was in the “study-phase” of exploring the assets.
Speaking at the Bloomberg Tech Conference, Khosrowshahi said stablecoins offer “a practical benefit other than crypto’s historic value.”
Meanwhile, Fortune reported that Airbnb was in talks with stablecoin infrastructure firm BNVK.
Firms are exploring stablecoins to save costs and boost efficiency in payment processing and international transactions, but agreed legislative clarity among lawmakers remains a long way off.
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