In a letter sent to national authorities on Wednesday, noted crypto-critic Senator Elizabeth Warren and Representative Jake Auchincloss called for an investigation into the Trump and Melania meme currencies launched on the Solana bitcoin a moment before Donald Trump’s next opening.
Warren and Auchincloss raised fears about potential conflicts of interest, customer threats, and national security implications of cryptocurrencies linked to Trump and First Lady 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 said.
Last year, then-President-Elect Trump launched the Republican image gold, followed the day before the opening by Melania Trump’s Melania Meme gold.
Trump’s decision to join the image gold mania sparked controversy and censure on Crypto Twitter.
> dropping TRUMP memecoin 2 weeks before becoming chairman is unpleasant work
> fresh SEC/DOJ guarantees no prosecutors
> 80 % of cryptocurrencies coat to insiders DURING the administration
> most people losing money will remain MAGA who aren’t crypto local
> *should* been a murder but crime is legitimate then viral?— Coffeezilla ( @coffeebreak_YT ) January 18, 2025
“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 image coin’s market valuation stands at approximately$ 7 billion, with each sign buying at$ 35. 05, according to CoinGecko information. The Melania meme coin, meanwhile, has a market capitalization of over$ 415 million and is trading at$ 2. 77.
The letter also noted that the meme coins contributed to a surge in the Trumps ‘ net worth, which now stands at$ 58 billion. Warren and Auchincloss expressed concern over the potential for international effect on the President through those monetary resources.
“Anyone, including the leaders of angry nations, can secretly purchase these coins, raising the specter of unfettered and anonymous foreign influence over the President of the United States, ” the letter said. It even raised fears about a possible floor take.
“President Trump and his related business companies that own 80 % of TRUMP may dump their cash after a three-year period, generating large amounts for themselves while crashing the price of the coin for his followers left holding the bag, ” the letter said.
Warren and Auchincloss asked company heads to handle important issues about the meme currencies and requested actions by February 4, 2025.
Those concerns include :
- What ethics guidelines apply to the President and First Lady’s investments in TRUMP and MELANIA?
- Will FinCEN give Congress with monthly reports on trading activity in TRUMP, MELANIA, and potential Trump family cash?
- What authority do the SEC and CFTC have to address the risks meme coins pose to retail investors?
Warren and Auchincloss also took aim at the broader meme coin industry for failing to deliver any meaningful benefits to the wider financial ecosystem.
“These coins do not create new faster, cheaper, and safer payment rails, ” the letter said. “These coins do not help people borrow more affordably. They do not improve the financial system in any way for consumers. ”
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