A Democratic congresswoman has launched a scathing criticism of former President Donald Trump and Tesla CEO Elon Musk, accusing them of dismantling key consumer safeguards in the cryptocurrency space.
During a House Financial Services Committee hearing on February 13, Representative Ayanna Pressley (D-MA) expressed deep concerns about the rising wave of cryptocurrency scams, pointing to the weakening of the Consumer Financial Protection Bureau (CFPB) under Trump's administration and Musk's influence.
Pressley highlighted how the Department of Government Efficiency (DOGE) had effectively paralyzed the CFPB's operations. "Elon Musk and his DOGE bros have kicked out the employees, locked the door, and stopped all work from continuing," she stated during the hearing.
The Massachusetts representative also took aim at Trump's recent venture into cryptocurrency, citing a meme coin launch that resulted in substantial losses for retail investors. According to Pressley, the coin's value plummeted by approximately 40% after Trump insiders allegedly cashed out their profits, leaving ordinary investors bearing the losses.
"It was a scam," Pressley declared, emphasizing how working-class individuals were left holding devalued assets while insiders profited.
The congresswoman called for immediate action to restore the CFPB's regulatory authority, arguing that its absence has created an environment where cryptocurrency fraud can flourish unchecked.
Defenders of the DOGE reforms maintain that these changes are necessary to streamline government operations and reduce regulatory obstacles to crypto innovation. Musk's supporters argue that market-driven solutions can effectively combat fraud without heavy-handed regulation.
The debate highlights growing tensions between those advocating for stronger consumer protections in the cryptocurrency space and those pushing for reduced government oversight to promote industry growth.