Simply two weeks after Elon Musk took over Twitter in fall 2022, he advised workers that his massive plan to avoid wasting the social media platform from chapter was to show it right into a financial institution. Since then, he has rebranded the platform as X, and banking regulators in eight US states have authorized his purposes for money-transmitting licenses.
Now, as X continues submitting for money-transmitting licenses—in pursuit of turning X into an “the whole lot app,” a one-stop vacation spot the place customers financial institution, store, talk, and principally spend all their time on-line—US banking regulators are being urged to rethink approving X’s purposes to offer monetary providers, The Guardian reported. And Ars confirmed that states that already granted licenses are being pressured to revoke them.
In an open letter reviewed by Ars, legal professionals at Walden Macht & Haran LLP—who’re representing a Saudi household suing Twitter/X—warned each “attorneys common and banking commissioners throughout 50 states” that Musk’s firm needs to be thought of “unfit” to carry banking licenses. They alleged that X is unfit for banking as a consequence of its alleged therapy of customers’ private knowledge and “intentional complicity” in human rights violations. These grievances, The Guardian reported, additionally name into query whether or not X “might be trusted to abide by federal and state legal guidelines defending client knowledge and data.”
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