Rep. Maxine Waters (D-CA) exposed a so-called "rug pull" scam that was used to dupe thousands of people who bought President Donald Trump's crypto coin.

During Tuesday's House Financial Services Committee hearing, Waters noted that her "stablecoin" legislation differed from Trump's unregulated crypto coin.

Rep. Maxine Waters (D-CA) on Tuesday exposed a so-called "rug pull" scam that was used to dupe thousands of people who bought President Donald Trump's crypto coin.

During the House Financial Services Committee hearing, Waters noted that her "stablecoin" legislation differed from Trump's unregistered crypto coin, which drew criticism from several GOP members.

"Now, let me be clear, this is not about any particular president's actions," she noted. "My legislation is focused on stablecoins, which are a type of cryptocurrencies that are pegged to the value of a conventional currency, such as the U.S. dollar."

However, she went on to highlight Trump's actions in issuing his own meme coin in 2017.

"Many of you know that when President Trump first issued his meme coin three days before his inauguration, I expressed my deep concern," said Waters.

"As I stated at the time, this action raised major conflicts of interest, national security risk for the country, and left consumers vulnerable to these rug pulls, market manipulation, and more."

"Unfortunately, that has happened," she noted.

"As several news outlets reported, President Trump's insiders reportedly earned a staggering $350 million from sales and fees in the three weeks after his meme coin was launched."

"But while Trump ran away with his money, reports show that a far larger number of investors lost more than $2 billion after the meme coin crashed."