U.S. Lawmaker Slams Trump’s Meme Coin, Accuses Elon Musk’s DOGE Movement of Weakening Consumer Protections
U.S. Representative Ayanna Pressley (D-MA) has raised alarms over the growing number of cryptocurrency scams, blaming former President Donald Trump and tech billionaire Elon Musk for dismantling key consumer protections. Speaking at a House Financial Services Committee hearing on Feb. 13, Pressley stressed the need for stricter regulations to safeguard investors from fraudulent crypto schemes.
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Concerns Over Crypto Fraud and Regulatory Rollbacks
Pressley accused Trump and Musk of undermining the Consumer Financial Protection Bureau (CFPB), an agency originally designed to combat financial fraud and scams. According to the congresswoman, regulatory efforts aimed at protecting consumers have been deliberately weakened, leaving everyday investors vulnerable.
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“The CFPB was once a powerful shield against financial exploitation,” Pressley said. “But now, thanks to Trump and Musk’s so-called ‘DOGE bros,’ the agency’s work has been shut down, leaving consumers exposed to crypto scams.”
She pointed to numerous cases where individuals lost their life savings to fraudulent crypto schemes, emphasizing that the rollback of financial protections has created a lawless environment in the digital asset space.
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Trump’s Meme Coin Controversy
Pressley also took aim at Trump for his recent foray into the crypto market, particularly his involvement in a meme coin project that quickly collapsed.
“Earlier this year, Trump launched his own cryptocurrency meme coin. He promoted it across social media, encouraging everyday investors to buy in,” she stated. “But within weeks, its value plummeted by 40% as insiders cashed out, leaving ordinary investors with the losses. It was a classic pump-and-dump scam.”
Her remarks highlight concerns that influential figures like Trump are using their platforms to promote speculative crypto investments, potentially misleading retail investors.
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The Role of Elon Musk and the DOGE Community
Musk, a vocal supporter of Dogecoin (DOGE) and other decentralized financial projects, has been accused by Pressley of pushing a deregulated crypto environment that lacks consumer safeguards. She argued that Musk’s influence over regulatory decisions, particularly through his advocacy for minimal government intervention in crypto markets, has allowed fraudulent schemes to thrive.
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“Elon Musk and his DOGE supporters have effectively blocked critical oversight, allowing bad actors to manipulate markets and defraud investors,” she warned.
Debate Over Crypto Regulation
While Pressley called for the CFPB to be reinstated with stronger oversight powers, supporters of Musk and Trump pushed back, arguing that deregulation fosters innovation and economic growth.
Musk’s advocates claim that reducing regulatory red tape encourages blockchain development and allows market-driven solutions to combat fraud. Meanwhile, Trump’s supporters view his pro-crypto stance as a move toward financial freedom and decentralization, positioning the U.S. as a leader in blockchain innovation.
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Despite these differing perspectives, Pressley remained firm in her stance that crypto regulations must be reinforced to prevent further financial exploitation. “We need strong consumer protections, not an unchecked market where everyday people are left to suffer the consequences,” she concluded.
As the debate over cryptocurrency regulations intensifies, lawmakers, investors, and industry leaders will continue to grapple with finding the right balance between innovation and investor protection.
