Elon Musk’s X Bank/FinTech Dreams Are Over—US Bank Regulators Reportedly Declare

The Everything app is one less feature from bringing all a person needs as Elon Musk's X banking and FinTech dreams are over according to reports. It was because there was a significant complaint that lawyers submitted via an open letter, with the law firm known for representing a Saudi family that is suing X, and the US bank regulators receiving it.

Supposedly, X's bank features were seeing good traction as the company filed it, as various regulators in different states approved it until the letter sent it down the drain.

Elon Musk's X Bank/FinTech Dreams Are Over, But Why?

The dream to turn X into an app that also provides banking/FinTech services is over for now and this is because there is a law firm that represented a Saudi Arabian family who have issued a warning to US authorities.

An open letter (via Ars Technica) from the lawyers of Walden Macht & Haran LLP addressed US regulators including "attorney generals and banking commissioners" across 50 states about Musk's X and its plans to bring FinTech services.

Here, they claimed that X is "unfit" to hold banking licenses for various reasons, with the firm claiming that the company has problems regarding personal data handling of its current users, as well as "intentional complicity" in human rights violations.

According to Ars Technica, before this, eight US states have already approved X's filing for its banking licenses as the company prepares for a shift towards this new feature.

Saudi's Letter Pushed US Regulators to Turn it Down

The lawyers' letter has reportedly reached the ranks, with the states that already issued license getting pressure to revoke it.

The Saudi family that filed the complaint against Twitter back in May centers on the story of human rights activist, Abdulrahman Al-Sadhan, with his sister, along with the help of lawyers, who sued the social media for conspiring with the Saudi regime.

X, the Everything App, and its Developments

The renowned X platform has been trying to do it all, and this is because of its CEO, Elon Musk, who wants to turn it into a destination that would cover everything that a user needs. Its current CEO, Linda Yaccarino, has previously hinted that FinTech is coming to X, centering on payments and banking features that took a page from Musk's "X.com" which is now known as PayPal.

Like various features on X which were enjoyed by users before for free, Musk has sent it behind a paywall to feature the Blue subscription service (Twitter Blue), with the verification checkmark being its main offer. However, other features joined the verified checks as the likes of X Pro (formerly the TweetDeck), long-form tweets, massive video uploads, and more are also exclusive here.

The plans to turn X into the Everything app are growing, but certain entities believe X/Twitter should not be given the liberty to do so. The banking or FinTech dreams are over for now, but this is not yet thrown away entirely as Musk did not confirm anything being scrapped regarding this, now looking to persuade the US regulators to reconsider its application moving forward.