In a letter sent Wednesday to federal regulators, the crypto-critical senator noted Elizabeth Warren and Rep. Jake Auchincloss called for an investigation into the Trump and Melania meme pieces launched on Solana blockchain one day before Donald Trump’s second inauguration.
Warren and Auchincloss have raised concerns about potential conflicts of interest, consumer risks and national security implications of cryptos linked to Trump and First Lady Melania.
“The Trump Organization, controlled by the Trump family, and its subsidiaries own 80% of TRUMP tokens, leaving the remaining 20% of investors to bear the cost of token price volatility,” the letter states. said.
Last week, President-elect Trump launched the ASSET same corner, followed the day before the inauguration by Melania Trump Melanie Meme coin.
Trump’s decision to join the meme coin craze has sparked debate and critical on Crypto Twitter.
“The launch significantly enriched Trump personally, allowed the crypto industry to funnel money to him, and created a volatile financial asset that allows anyone in the world to financially speculate on Trump’s political fortunes,” wrote Warren and Auchincloss.
THE Official Trump Meme Coin’s market cap is around $7 billion, with each token trading at $35.05, according to CoinGecko data. THE Melanie Meme Coin, on the other hand, has a market cap of over $415 million and trades at $2.77.
The letter also notes that the meme pieces contributed to an increase in the Trumps’ net worth, which now stands at $58 billion. Warren and Auchincloss have expressed concern about the potential for foreign influence on the president through these financial assets.
“Anyone, including leaders of hostile nations, can secretly purchase these coins, raising the specter of unbridled and untraceable foreign influence over the President of the United States,” the letter states. He also raised concerns about a potential pull the carpet.
“President Trump and his associated business entities who own 80% of TRUMP could dump their coins after a three-year period, generating huge sums for themselves while driving down the price of the coin for his supporters who are holding the bag,” the letter states.
Warren and Auchincloss asked agency heads to answer key questions about meme coins and requested answers by February 4, 2025.
These questions include:
- What ethical rules apply to the President’s and First Lady’s stakes in TRUMP and MELANIA?
- Will FinCEN provide Congress with annual reports on the business activities of TRUMP, MELANIA, and future Trump family coins?
- What authority do the SEC and CFTC have to address the risks that meme coins pose to retail investors?
Warren and Auchincloss also took aim at the broader coin industry for failing to deliver meaningful benefits to the broader financial ecosystem.
“These coins do not create new, faster, cheaper, and more secure payment rails,” the letter states. “These coins don’t help people borrow cheaply. They do nothing to improve the financial system for consumers.
Edited by Sébastien Sinclair
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