Senator Elizabeth Warren has called on U.S. financial regulators and the Office of Government Ethics to investigate the ethical and legal implications surrounding the cryptocurrency tokens associated with Donald and Melania Trump. In a letter dated January 22, Warren expressed her concern regarding the couple’s venture into the crypto space with the introduction of two memecoins — TRUMP and MELANIA. She articulated fears that these tokens enable the Trumps to profit significantly from the influence of the presidency while enabling a speculative trading environment around Trump’s political future.
Warren, a prominent member of the Senate Banking Committee and a noted critic of cryptocurrencies, emphasized that the launch of these memecoins could allow foreign entities, including “leaders of hostile nations,” to discreetly acquire tokens, posing risks of untraceable foreign influence on U.S. governance. She stated that a considerable share — 80% — of the TRUMP memecoin is effectively controlled by the Trump family through the Trump Organization, leaving other investors exposed to significant price fluctuations.
The TRUMP token debuted shortly before Trump assumed the presidency on January 20 and initially skyrocketed in value. However, it has since experienced a steep decline, losing more than half its worth. Melania Trump’s token followed suit, seeing a rapid ascent and subsequent fall in its market price as well.
Warren’s letter, addressed to key regulatory officials including the Director of the Office of Government Ethics and the heads of various financial regulatory agencies, seeks clarity on a range of issues. These include the ethical responsibilities tied to the Trumps’ token holdings, mechanisms to monitor foreign purchases, and the regulatory framework governing memecoins. Meanwhile, the family’s involvement in the cryptocurrency landscape has drawn significant scrutiny, leading to expectations of upcoming lawsuits and intensifying debates regarding the ethics of such digital financial instruments.
