New York’s Department of Financial Services (NYDFS), the state’s financial regulator, told X that it cannot pay interest on X Money balances belonging to New York customers. The yield on those accounts will fall to 0.00% on October 1, 2026, removing a key feature shortly after X Money became available nationwide. X Money launched on August 31 for Premium and Premium+ subscribers with U.S. accounts, but New York and Massachusetts were excluded because X Payments LLC held money transmitter licenses in 41 states and Washington, D.C., but not those two states. The service had promoted a 6% APY for Premium Plus subscribers, with standard Premium users eligible after meeting a deposit threshold or direct-deposit requirement. New York’s decision follows a May 2025 request from State Senator Brad Hoylman-Sigal and Assembly member Micah Lasher that NYDFS deny X a license, citing Elon Musk’s conduct at DOGE and concerns over X’s management of consumer data. The action is consistent with NYDFS’s reputation for strict oversight, including its approach to digital-asset and stablecoin regulation.