In today’s Senate hearing, Senator Nydia Velázquez (D-NY) emphasized the urgent need for bipartisan stablecoin legislation.
She praised Representative Maxine Waters for introducing robust regulations that aim to ensure strong oversight of the cryptocurrency industry while fostering financial inclusion and innovation.
However, Velázquez expressed deep concerns regarding potential conflicts of interest involving prominent political and business figures tied to the cryptocurrency and stablecoin sectors. She highlighted President Donald Trump and Elon Musk, alleging their actions pose significant ethical questions.
According to Velázquez, Trump, just days before his second term, aggressively promoted his own memecoin (TRUMP) through social media. Similarly, Melania Trump introduced her cryptocurrency shortly before the inauguration. When both tokens crashed, ordinary investors faced losses totaling more than $2 billion, whereas Trump insiders reportedly profited approximately $350 million collectively.
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She also criticized Elon Musk, referencing his Department of Government Efficiency, which was based on Dogecoin – a memecoin frequently promoted through Musk’s social media channels, resulting in multiple lawsuits alleging market manipulation.
The senator raised additional concerns regarding Secretary of Commerce Howard Lutnick, whose ties to Tether, the controversial stablecoin issuer, create potential conflicts between his personal financial interests and governmental duties.
Further intensifying worries, Velázquez pointed out plans by Musk to transform his platform X into a digital wallet and issue his own stablecoin. Likewise, Trump-owned World Liberty Financial recently announced the launch of its stablecoin, USD1.
Velázquez concluded by stressing the necessity for the proposed stablecoin legislation to explicitly prohibit government officials, irrespective of political affiliation, from profiting through personal involvement in stablecoin issuance.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/trump-and-musk-accused-of-crypto-manipulation-in-heated-senate-hearing/