In a letter to US regulators, Senator Elizabeth Warren and Representative Jake Auchincloss expressed serious concerns about the Coin Coin TRUMP and MELANIA Memes introduced by President Donald Trump and the First Lady Melania Trump.
The currencies, introduced shortly before Trump took office, have raised concerns about potential conflicts of interest, market manipulation and foreign influence.
Warren Warns About Market Manipulation and Foreign Influence
The TRUMP coin has experienced sharp price fluctuations, rising from less than 10 USD to 75 USD before falling to 32.44 USD at the time of writing. Similarly, the MELANIA currency also has a similar fluctuation journey.
Senator Warren emphasizes the risks to consumers investing in these Meme Coin Coins. These currencies are mainly influenced by internet trends and are known for their volatility and speculation.
One of the biggest concerns is the potential for these currencies to be used as tools of foreign influence. Warren pointed out that anyone can buy these coins, thereby increasing the risk that foreign governments or individuals could use them to indirectly transfer money to the Trump family.
This case could undermine US national security and raise ethical questions.
“Anyone, including leaders of hostile nations, could secretly purchase these coins, raising the possibility of unchecked and untraceable foreign influence on the President of the United States, while President Trump’s supporters bear the risk of investing in TRUMP and MELANIA,” the letter read write.
Warren also warned that these coins could cause significant financial harm to investors. The Trump family’s large ownership means they can reap large profits while leaving other investors at risk.
Additionally, Warren criticized the lack of transparency and consumer protection. The terms and conditions of the TRUMP and MELANIA coins include disclaimers that the issuer shall not be liable for any fraudulent activity.
The senator also called on regulators to investigate these coins, calling on the SEC, CFTC, and other relevant agencies to address the risks associated with Meme Coin Coins.
She addressed whether these products violate federal securities or commodities laws. Warren also questioned how the agencies plan to monitor and manage these coins in the future.
Separately, Elizabeth Warren wrote one open letter to Department of Government Effectiveness (DOGE) Chairman Elon Musk. She proposed ways for the federal government to cut wasteful spending.
“My proposals would reduce spending on wasteful programs and contracts, would cut unfair loopholes and unnecessary subsidies to the richest Americans, would make government more efficient and effective, and will save taxpayers at least $2 trillion over the next decade,” she wrote.
