The New York Department of Financial Services (NYDFS) informed Elon Musk's X Money that it cannot continue to pay bank account-like interest on non-bank account deposits of New York residents. ^[1] Consulting firm Ankura argues that selecting a regulatory pathway under the GENIUS Act has become a board-level risk decision affecting an issuer's ability to launch and expand nationally. ^[2] The NYDFS approved X Payments as a money transmitter, not a bank, effective July 23, with license number MT-105532 issued on July 24. ^[3] To avoid capital flight from New York, X Money offered New York residents a $300 direct deposit bonus as interim compensation, which it repeatedly insisted does not constitute APY or interest. ^[4] X Money does not offer bank accounts in New York but describes its product as a stored value account that allows customers to obtain interest through September 30 and earn a $300 bonus after October 1. ^[5] A state's stablecoin law does not automatically create a viable pathway; the state must certify its regime is substantially similar to the federal framework, and the federal Stablecoin Certification Review Committee must unanimously approve it. ^[6] Treasury Department regulations proposed in August 2026 restrict stablecoin issuance in the United States to approved issuers, with restrictions expected to take effect on January 18, 2027. ^[7]