Senator Richard Blumenthal, D-CT, speaks during a hearing of the Senate Judicial Committee on the insurrection of January 6, in the Harte Senate Office building in Capitol Hill in Washington, DC, on March 2, 2021.
Graeme Jennings | Pool through Reuters
Senator Richard Blucenthal pressed this week Visa For detailed plans and documents related to your agreement to provide payment services to the Social Network Site of Elon Musk, X, while preparing to launch a digital wallet.
Blumenthal, Democrat of Connecticut and the classification member of the Senate Research Subcommittee Subcommittee, said Musk's role in limping the consumer financial protection office, the consumer control agency that would be a key regulator of the Money X Service, as among the reasons for the request for information, according to a March 6 letter obtained by CNBC.
“Given the unique position of the president and technology director of X, Elon Musk, as leader of the Government Efficiency Department and his recent role in gutting the Office of Financial Protection of the Consumer … Visa can take advantage of the deep conflicts of interest and the unscrupulous conduct of his new commercial partner,” Blumenthal wrote.
The Senate's application is one of the first signs of scrutiny on Visa, which executes the world's largest credit card network, after an announcement of the end of January that he had agreed to ignite pairs on X. Regulator and that the Future regulator and that the segets of the CFPB competences, which could compete with the contrents of the contrints of the contriques of the segettes of the Musk 'contriques, and that the cont exits of the CFPB continents. Your nascent X money service.
The letter, aimed at the Visa CEO, Ryan Mcinerney, also showed doubts about whether a social networks known by “Bots, scams and hate speeches” could prevent scams and fraud from proliferating on the site. Musk bought the site in 2022, when it was known as Twitter.
“These concerns ask questions about the ability to protect consumers from fraud and scams as they venture into the financial sector,” Blumenthal wrote.
“As the world's largest payment processor, Visa has the legal responsibility to ensure that her network is free of financial crimes, such as scams and fraud, money laundering, terrorist financing and more,” he said.
Blumenthal requested a detailed description of visa plans to allow X payments, including the service model of the service and visa paper in compliance with the regulatory requirements around money laundering and illicit remittances.
He also pressed Visa for “all records” related to the agreement and communications between the staff of X, Visa, Doge and CFPB.
“We are currently checking the letter and we will respond properly,” said a visa spokesman in a statement.
An X representative had no comments immediately.
