TechFlame News - According to The Block, Mizuho Bank research analysts stated in a report released on Thursday that X Money, the financial feature launched by Elon Musk's X platform, has the potential to disrupt the U.S. payments industry, but its cryptocurrency integration plans may face regulatory hurdles. In a client report, Mizuho analysts Dan Dolev and Andrew Jenkins wrote that X Money is positioned as the financial infrastructure layer of the X platform, aiming to integrate instant messaging, bank deposits, and commercial transaction functions, similar to the "super app" model of WeChat Pay or Alipay. With X platform's 500 to 600 million monthly active users and Musk's background as a co-founder of PayPal in the payments industry, X Money has the potential to disrupt the U.S. payments industry. On the regulatory front, analysts pointed out two major potential obstacles: First, the recently proposed "CRYPTO Act" (Cryptocurrency Regulation, Protection, Trust, and Oversight Act) in New York State aims to criminalize unlicensed virtual currency operations in the state, which would raise the compliance threshold for X's future cryptocurrency integration plans. Second, the "Clarity Act" may restrict non-bank financial platforms' ability to offer returns to users, potentially hindering X Money's plan to provide users with a 6% annualized yield on cash balances. Analysts noted that the timing of launching such a yield product is "particularly sensitive." Mizuho simultaneously downgraded PayPal (PYPL) stock to "neutral," pointing out that PayPal and its Venmo app face the most direct substitution risk, as X is targeting the same peer-to-peer transfers and digital wallet entry points. This week, the X platform also launched a new feature called "Cashtags," allowing users to directly view financial data for stocks and cryptocurrencies within their timelines.