So Elon Musk recently announced that X will launch X Money next month, and this has become one of the most interesting topics in the crypto market this week, even though the product itself isn't about crypto at all.

X Money will have peer-to-peer transfers, bank deposits, debit cards, and cashback in partnership with Visa. The system will operate through a licensed subsidiary in more than 40 states in the US. It's more like Venmo attached to a social media app, not a crypto wallet. But you know what? As soon as Musk opened his mouth about payments on X, Dogecoin immediately went up. This pattern has been repeated since 2021 every time Musk mentions something about coins or payments.

What’s actually more interesting about Dogecoin isn’t its crypto integration, but the 6% yield offered by X Money. That rate is higher than almost all regular savings accounts in the US and competes with money market funds. This raises big regulatory questions, especially since the timing coincides with Congress debates on the CLARITY Act, which will regulate interest-bearing products. The main question is whether non-bank platforms can offer returns like deposits to consumers.

Latest data shows Dogecoin is now at $0.09 with a change of +0.90% in the last 24 hours. The situation is different from a few days ago. If X Money truly launches with a 6% yield before the CLARITY Act is passed, it will set an awkward precedent for future crypto stablecoin regulation.

Oh, and there’s also other interesting news. World Liberty Financial, a crypto project associated with a certain name, is in trouble. Their WLFI token dropped 13.24% to $0.08 after the project defended its controversial lending strategy on the DeFi platform Dolomite. They acknowledged that they use their own governance token as collateral to borrow stablecoins and drain the Dolomite pool of USD1. This serves as a reminder that governance tokens in crypto can get complicated if not managed properly.

So basically, a lot is happening right now at the intersection of traditional fintech and crypto. X Money could be a game-changer if regulation allows it, but that depends on how Congress views interest-bearing products from non-bank platforms. Meanwhile, some crypto projects are struggling with trust issues. Worth keeping an eye on all these developments.