In a letter to US regulators, Senator Elizabeth Warren and Representative Jake Auchincloss expressed serious concerns over the TRUMP and MELANIA meme coins launched by President Donald Trump and First Lady Melania Trump.
These coins, which were introduced shortly before Trump’s inauguration, have raised alarm bells regarding their potential for conflicts of interest, market manipulation, and foreign influence.
Warren Warns of Market Manipulation and Foreign Influence
The TRUMP coin has already experienced extreme price fluctuations, skyrocketing from under $10 to $75 before crashing back to $32.44 at press time. Similarly, the MELANIA coin has followed the same volatile trajectory.
Senator Warren highlighted the risks posed to consumers who invest in these meme coins. The coins are primarily driven by internet trends and are known for their unpredictable, speculative nature.
One of the most significant concerns is the potential for these coins to be used as tools for foreign influence. Warren pointed out that anyone can purchase these coins. Thus, raising the risk that foreign governments or individuals could use them to indirectly funnel money to the Trump family.
This scenario could undermine US national security and raise ethical questions.
“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, all while President Trump’s supporters are left to shoulder the risk of investing in TRUMP and MELANIA,” the letter said.
Warren also warned that these coins could result in significant financial harm for investors. The Trump family’s massive ownership stake means they stand to profit immensely while leaving other investors to shoulder the risks.
Additionally, Warren criticized the lack of transparency and consumer protections. The terms and conditions of the TRUMP and MELANIA coins include disclaimers that absolve the issuers of any responsibility for fraud.
The senator also urged regulators to investigate these coins, pressing the SEC, CFTC, and other relevant agencies to address the risks associated with meme coins.
Specifically, she has asked whether these products might violate federal securities or commodities laws. Warren also questioned how the authorities plan to monitor and regulate the coins in the future.
Separately, Elizabeth Warren also penned an open letter to Department of Government Efficiency (DOGE) Chair Elon Musk. She proposed ways the federal government could cut wasteful spending.
“My recommendations would reduce spending on wasteful programs and contracts, would cut out unfair loopholes and giveaways to the wealthiest Americans, would make the government more efficient and effective, and would save taxpayers at least $2 trillion over the next decade,” she wrote.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
