Crypto-Critic Elizabeth Warren Urges Regulators to Probe Trump Meme Cash

Elizabeth Warren. Image: Shutterstock

In a letter despatched to federal regulators on Wednesday, famous crypto-critic Senator Elizabeth Warren and Consultant Jake Auchincloss referred to as for an investigation into the Trump and Melania meme cash launched on the Solana blockchain a day earlier than Donald Trump’s second inauguration. 

Warren and Auchincloss raised considerations about potential conflicts of curiosity, client dangers, and nationwide safety implications of cryptos linked to Trump and First Woman Melania.

“The Trump family-controlled Trump Organization and its affiliates hold 80% of the TRUMP coin, leaving the remaining 20% of investors to bear the cost of coin’s price volatility,” the letter stated

Final week, then-President-Elect Trump launched the TRUMP meme coin, adopted the day earlier than the inauguration by Melania Trump’s Melania Meme coin.

Trump’s choice to affix the meme coin craze sparked debate and criticism on Crypto Twitter.

“The launch has massively enriched Trump personally, enabled a mechanism for the crypto industry to funnel cash to him, and created a volatile financial asset that allows anyone in the world to financially speculate on Trump's political fortunes,” Warren and Auchincloss wrote.

The Official Trump meme coin’s market capitalization stands at roughly $7 billion, with every token buying and selling at $35.05, in line with CoinGecko information. The Melania meme coin, in the meantime, has a market capitalization of over $415 million and is buying and selling at $2.77.

The letter additionally famous that the meme cash contributed to a surge within the Trumps' internet price, which now stands at $58 billion. Warren and Auchincloss expressed concern over the potential for overseas affect on the President by means of these monetary belongings.

“Anyone, including the leaders of hostile nations, can covertly buy these coins, raising the specter of uninhibited and untraceable foreign influence over the President of the United States,” the letter stated. It additionally raised considerations a couple of potential rug pull.

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“President Trump and his associated business entities that own 80% of TRUMP could dump their coins after a three-year period, generating huge sums for themselves while crashing the price of the coin for his supporters left holding the bag,” the letter stated.

Warren and Auchincloss requested company heads to handle key questions in regards to the meme cash and requested responses by February 4, 2025. 

These questions embody: 

  • What ethics guidelines apply to the President and First Woman’s holdings in TRUMP and MELANIA? 
  • Will FinCEN present Congress with annual studies on buying and selling exercise in TRUMP, MELANIA, and future Trump household cash? 
  • What authority do the SEC and CFTC have to handle the dangers meme cash pose to retail traders?

Warren and Auchincloss additionally took goal on the broader meme coin business for failing to ship any significant advantages to the broader monetary ecosystem.

“These coins do not create new faster, cheaper, and safer payment rails,” the letter stated. “These coins do not help people borrow more affordably. They do not improve the financial system in any way for consumers.”

Edited by Sebastian Sinclair

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