Senator Elizabeth Warren and Representative Jake Auchincloss are urging U.S. regulators to investigate the TRUMP and MELANIA meme coins created by Donald and Melania Trump. They expressed concerns about foreign influence, market manipulation, and risks for investors associated with these digital currencies.
The TRUMP coin experienced significant price fluctuations, rising from under $10 to $75 before dropping to $32.44. The MELANIA coin also showed extreme volatility, making it a risky investment. Warren pointed out that these meme coins are speculative and influenced by online trends, putting consumers at risk.
Warren is particularly worried about the potential for foreign entities to exploit these coins. Since they are publicly available, adversaries could buy them to send money to the Trump family, which could threaten U.S. national security and raise ethical issues. She stated that anyone, including foreign adversaries, can purchase these coins, increasing the risk of unregulated foreign influence while Trump supporters face financial risks.
Another concern is the Trump family’s significant ownership of these coins. While they could profit, investors might suffer major losses. The terms for the TRUMP and MELANIA coins include disclaimers that protect the issuers from liability in cases of fraud or misconduct, which Warren criticized as weak consumer protections.
Warren called on the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to investigate if these coins violate securities or commodities laws. She also questioned how regulators will manage such coins in the future to mitigate risks.
Additionally, Warren sent an open letter to Elon Musk, suggesting ways to reduce government spending. She proposed cutting wasteful programs, closing tax loopholes for the wealthy, and enhancing efficiency to save taxpayers $2 trillion over the next decade.
