California Rep. Maxine Waters, the top Democrat on the U.S. House of Representatives Financial Services Committee, echoed the concerns of many crypto users and lawmakers accusing President Donald Trump of undermining legitimate projects in the industry by publishing its own memecoin.
In a January 20 statement, Rep. Waters said the official Trump Token (TRUMP) represented the “worst cryptocurrency” and provided an example to regulators and policymakers who should be concerned about the future of the industry. under the new presidential administration. The California lawmaker said investors would “be left holding the bag when Trump insiders sell,” alleging a tug-of-war.
“The terms and conditions of the exhibit prevent buyers from filing class action lawsuits even if they are defrauded,” Rep. Waters said, adding:
“There is also a worrying lack of transparency regarding the buyers of this piece. Through his memecoin, Trump created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his entourage.
Related: What Trump’s memecoin post signals for cryptocurrency regulation
The token was launched on January 17, the same day that Trump’s wife Melania introduced her own memecoin brand. He has faced widespread criticism – even among some die-hard supporters – for allegedly trying to capitalize on the office of president. Over the past 24 hours, the coin’s price has fallen by over 40%, from $67.87 to $38.54 at press time.
Rep. Waters added:
“These actions by President Trump will also further taint the crypto industry, which has long fought for legitimacy and a level playing field with other financial institutions.”
Inauguration Actions Lack Crypto
Although many executives representing major crypto companies have said they will attend events related to Trump’s inauguration, the US president has yet to discuss digital assets or blockchain since taking office in 12:00 p.m. ET. The technology was not mentioned in his January 20 acceptance speech, and contrary to previous reports, the administration’s list of priorities did not include crypto.
At the time of publication, Trump had yet to sign a series of executive orders he promised before taking office, including one that would potentially establish a strategic reserve of Bitcoin (BTC). He also promised to commute the sentence of Silk Road founder Ross Ulbricht, who is currently serving a life sentence.
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