United States House of Representatives member Gerald Connolly has called for immediate action to address concerns about President Donald Trump’s financial ties, especially in the cryptocurrency space.
In a letter, Connolly asked the Committee on Oversight and Government Reform to investigate potential conflicts of interest tied to Trump’s involvement in cryptocurrency projects, which he said could weaken the president’s ethics and transparency.
Trump Meme Coin: A Threat to Transparency and National Security?
Connolly’s letter concentrate into Trump’s role in launching World Liberty Financial (WLF), a cryptocurrency project inspired by Trump’s vision of financial freedom.
According to the report, Justin Sun, founder of Tron, has made a significant investment in WLF. Connolly said Justin Sun is a foreign businessman being investigated by the US Securities and Exchange Commission for alleged securities fraud related to his own cryptocurrency projects.
Sun’s $30 million investment in the WLF Token is said to have helped the platform reach its revenue target, potentially transferring funds directly to Trump and his family.
“The expanding reach of President Trump and thus the Trump Organization’s financial relationships and pandering promises is troubling,” Connolly wrote.
He affirmed that the Oversight Committee must investigate these projects according to the provisions of the Presidential Ethics Reform Act. Although WLF Tokens do not provide legitimate financial gain, Connolly warns that they are an easy mechanism for foreign individuals and entities to curry favor with the Trump family.
Trump’s other involvements in cryptocurrency raise concerns about WLF. Just days before the inauguration, Trump launched a meme coin called “TRUMP.
The TRUMP token has reached a fully diluted value of nearly $40 billion. The “Official Trump” token, launched last week, has grown more than 1,100% faster, rising from $6 to $75 in just a few hours. However, at the time of writing, it is trading around $37.93.
When asked about TRUMP at a recent conference, the President seemed uncertain about its details.
“I don’t know where it is. I don’t know much about it other than I launched it, other than it was very successful,” Trump said.
Furthermore, Congresswoman Maxine Waters said the TRUMP coin meme “represents the worst of cryptocurrency.”
“Through his meme coin, Trump created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer funds to him and his close allies,” Waters said in one declare on January 20.
She added that anyone in the world, including those who have been sanctioned by the United States, can trade and profit from TRUMP.