A U.S. representative has sharply criticized President Donald Trump and billionaire Elon Musk for weakening consumer protections in the cryptocurrency sector, arguing that their actions have made the industry more susceptible to fraud and financial loss.
U.S. Representative Ayanna Pressley (D-MA) raised concerns over the growing number of cryptocurrency scams during a House Financial Services Committee hearing on February 13, calling for stronger consumer protections. She emphasized that the Consumer Financial Protection Bureau (CFPB) had played a crucial role in combating financial fraud before it was effectively dismantled under Trump’s administration and further hindered by Musk’s influence through the Department of Government Efficiency (DOGE).
Pressley pointed to real-world examples of individuals losing their life savings to cryptocurrency schemes, stressing the need for immediate government intervention. She claimed that without the CFPB’s oversight, consumers are left exposed to fraudulent crypto ventures.
“The agency is now under attack. Elon Musk and his so-called DOGE bros have kicked out the employees, locked the door, and stopped all work from continuing,” Pressley stated during the hearing.
Trump’s Meme Coin Under Scrutiny
Pressley also condemned Trump for launching a meme coin, arguing that it led to significant financial losses for ordinary investors.
“Earlier this year, Trump launched his own cryptocurrency meme coin. He promoted it on social media, and people invested in it,” she stated. “But then it quickly lost value, roughly 40%, when Trump insiders pulled their money for a profit, resulting in working-class people stuck with the losses. It was a scam.”
The meme coin, known as $Trump, was introduced on January 17 and initially surged in value, reaching a peak of over $14.5 billion in market capitalization by January 19. However, it later plummeted by two-thirds, with small traders bearing the brunt of the collapse.
Blockchain analysis firms, including Merkle Science and Chainalysis, estimated that entities behind $Trump earned between $86 million and $100 million in trading fees within two weeks of its launch. One of these entities, CIC Digital, a Trump-affiliated company, was listed as a beneficiary of the trading revenue. The opaque nature of the coin’s ownership structure has raised ethical concerns, with some experts questioning the president’s ability to regulate an industry in which he has personal financial interests.
Despite the backlash, Trump has doubled down on his pro-crypto stance, pledging to make the U.S. the “crypto capital of the planet” by relaxing regulations and encouraging digital asset ownership. Meanwhile, Musk and his supporters argue that reducing bureaucratic oversight will enhance innovation in the sector.
However, critics like Pressley maintain that the lack of oversight is exacerbating financial risks for retail investors, further underscoring the need to reinstate the CFPB’s authority.
