Crypto Critic Elizabeth Warren Probes Trump's Meme Coin Venture

1 month ago

Senator Elizabeth Warren is calling foul connected President Donald Trump's meme coin, pressing for the U.S. Office of Government Ethics and fiscal regulatory agencies to excavation into the ethical and regulatory details astir the $TRUMP token.

Warren, who is the apical Democrat connected the Senate Banking Committee that oversees U.S. fiscal regulators, says the assets, including First Lady Melania Trump's ain eponymous meme coin, airs conflict-of-interest hazards for the president and item the astir destructive and volatile country of the crypto sector.

"Nearly overnight, President Trump and his wife’s nett worthy skyrocketed to $58 billion," Warren wrote successful the missive alongside Representative Jake Auchincloss, a chap Massachusetts Democrat who serves connected the House Energy and Commerce Committee. "Anyone, including the leaders of hostile nations, tin covertly bargain these coins, raising the specter of uninhibited and untraceable overseas power implicit the President of the United States, each portion President Trump’s supporters are near to enarthrosis the hazard of investing successful $TRUMP and $MELANIA."

Launched the Friday earlier his inauguration this week, Trump's token — for which his institution retains immoderate 80% of the coins successful circulation — roseate rapidly from astir $3 past week to astir $37 connected Thursday. It's opened a anticipation for Trump to marque "extraordinary profits disconnected his presidency," the lawmakers noted.

The missive was sent to the Treasury Department, Securities and Exchange Commission and the Commodity Futures Trading Commission — each of which present has a caller Trump prime astatine the helm. Warren and Auchincloss raised the constituent that Trump is successful complaint of appointing the imperishable heads of these regulatory agencies that volition marque decisions affecting the aboriginal of his crypto tokens.

None of the 3 national agencies instantly responded to CoinDesk's requests for remark connected the letter, oregon whether they're reviewing the tokens successful immoderate different capacity.

"$TRUMP and $MELANIA contiguous sedate risks to President Trump’s quality to impartially govern our federation — and to investors successful these coins, who whitethorn beryllium made victims of a rug propulsion strategy orchestrated by the Trump family," Warren's missive concluded.

The lawmakers articulation different Democrats who person likewise raised concerns astir Trump issuing these assets close earlier taking office. Representative Gerry Connolly, the apical Democrat connected the House Oversight Committee, called for an investigation successful a missive sent to his committee's Republican president 1 time into Trump's caller term, additionally raising issues with World Liberty Financial and its ties to Tron blockchain laminitis Justin Sun. And Representative Maxine Waters, the ranking Democrat connected the House Financial Services Committee, besides shared her alarm astir Trump's coin.

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