- New York’s Department of Financial Services has told X that it cannot pay interest on X Money balances held by New York customers.
- X said it will fight to restore advertised yields of up to 6% to New York Premium subscribers.
- X never obtained a money transmitter license in New York, a state whose regulator is regarded as one of the strictest in the country.
New York’s financial regulator (NYDFS) has informed X, owned by Elon Musk, of its inability to pay interest on X money balances belonging to New York customers. NYDFS went on to say that the yield on such accounts will drop to 0.00% on October 1, 2026.
The announcement yanks one of X’s major perks from its users in what many would consider the largest financial market in America, barely weeks after X Money was launched across the country.
APY falls to zero as X never obtained a New York license.
Sawyer Merritt spotted the change and stated so in an X post on September 1, 2026. According to the post, the New York Department of Financial Services (NYDFS) informed X that it cannot pay interest on X Money balances and that New York accounts will receive no interest as of October 1.
X Money relies on yield as a marketing tool to attract users. When X Money was launched, it advertised a 6% APY for Premium Plus subscribers, while standard Premium users would enjoy such a rate once their deposits crossed a particular threshold or met a direct-deposit requirement.
Also, X offered users a metal Visa debit card linked to a user’s X handle, no fees on peer-to-peer transfers, and Apple Pay and Google Pay support.
For New Yorkers, however, the choice to earn interest is gone.
New York and Massachusetts not part of the nationwide launch
X Money was made available to all Premium and Premium+ subscribers with US accounts on August 31. This was announced by the company in its post. However, not all states were covered in the nationwide rollout.
When X Money was launched, X Payments LLC, a money-services subsidiary of X, had obtained money transmitter licenses in 41 states and D.C., with New York and Massachusetts absent.
Around 4.4 million Premium subscribers are eligible to use X Money, and as of its July rollout, New York had not made a decision, and X Money was still without a license.
Today’s decision did not come without precedent. State Senator Brad Hoylman-Sigal and Assembly member Micah Lasher encouraged the NYDFS to deny X a money transmitter license in a May 2025 letter. They cited Musk’s conduct at DOGE and worries about X’s management of consumer data.
NYDFS is hard to please
The pause in interest is consistent with the agency’s reputation. Cryptopolitan has previously reported on the strict operation that the DFS runs as a state-level financial regulator. It’s regarded as a pacesetter by banks and crypto issuers.
In July, after Circle had received a limited purpose trust charter from the DFS, Circle’s CEO, Jeremy Allaire, called the DFS “an international standard setter for digital asset regulation.”
The department has begun tightening rules. Cryptopolitan reported in June that the DFS proposed new stablecoin regulations intended to match the GENIUS ACT while it maintains its existing safeguards. This includes full reserve backing and independent audits.
If you're reading this, you’re already ahead. Stay there with our newsletter.
FAQs
What did NYDFS tell X to do?
DFS informed X that it is not currently permitted to pay interest on stored-value balances, so interest on New York customers' X Money accounts will stop and the APY will fall to 0.00% starting October 1, 2026, according to a September 1 post by Sawyer Merritt.
Why is X Money restricted in New York?
X's money-services subsidiary, X Payments LLC, holds money transmitter licenses in 41 states plus Washington, D.C., but not in New York or Massachusetts, and New York had issued no license as of the July 27, 2026 nationwide launch.
What interest rate did X Money advertise?
X Money advertised up to a 6% APY, which The Verge reported was available to Premium Plus subscribers, while standard Premium subscribers had to meet deposit or direct-deposit requirements to reach the same rate.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
