The Senate's Permanent Subcommittee on Investigations, spearheaded by Sen. Richard Blumenthal, has requested detailed information from Visa regarding its recent agreement with Elon Musk’s social media platform, X. The inquiry stems from concerns about Musk's involvement in undermining the Consumer Financial Protection Bureau (CFPB), which is poised to regulate X's impending digital wallet service, X Money. This service aims to facilitate peer-to-peer payments via the platform.
Visa, the operator of the world's largest credit card network, announced its partnership with X in late January. Following this disclosure, Musk's Department of Government Efficiency reportedly accessed CFPB data systems, sparking allegations that Musk sought to weaken a potential regulator and acquire competitors' trade secrets. Musk acquired X, formerly known as Twitter, in 2022.
Sen. Blumenthal expressed skepticism about X's capability to prevent scams and fraud, given its reputation for "bots, scams, and hate speech." He has called for a comprehensive explanation of Visa's payment facilitation plans on X, querying the business model and adherence to regulatory standards. The request also seeks all documentation related to the deal, as well as communications between X, Visa, the Department of Government Efficiency, and CFPB personnel.
"Given the unique position of X Chairman and Chief Technology Officer Elon Musk as leader of the Department of Government Efficiency and his recent role in gutting the Consumer Financial Protection Bureau … Visa stands to take advantage of the deep conflicts of interest and unscrupulous conduct of its new business partner." – Sen. Richard Blumenthal
This request marks one of the first instances of scrutiny directed at Visa following its collaboration with X. The digital wallet service is anticipated to launch soon, heightening regulatory and consumer protection concerns.
"These concerns raise questions about X's ability to protect consumers from fraud and scams as it ventures into the financial sector." – Sen. Richard Blumenthal
As of now, representatives for Visa and X have not provided comments regarding the ongoing investigation.
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