🌎 US Lawmakers Demand Probe Into Trump Meme Coins

US Lawmakers Demand Investigation into Trump’s Meme Coins

Sens. Elizabeth Warren and Rep. Jake Auchincloss are calling on US regulators to investigate President Trump’s TRUMP and MELANIA meme coins, citing concerns over potential ethics violations and foreign influence.

Concerns Over Ethics Violations

Warren and Auchincloss outlined their concerns in a letter to multiple federal agencies, including the US Office of Government Ethics, the SEC, the Treasury, and the CFTC. They noted that the mass token launch could allow “secretive foreign buyers seeking to curry influence with the administration” to purchase the coins and boost the President’s net worth.

“Anyone, including the leaders of hostile nations, can covertly buy these coins, raising the specter of uninhibited and untraceable foreign influence over the President of the United States.”

The lawmakers also pointed out that Trump and his wife’s combined net worth has surged to $58 billion overnight, thanks to the meme coins, which now represent nearly 90% of the President’s net worth. The Trump organization has also gained a profit of $58 million in trading fees alone by January 20.

Market Performance of TRUMP and MELANIA

Launched on January 18, the official Trump meme coin reached a market cap of more than $10 billion in less than 24 hours after its launch. However, its value has since crashed by more than 50%, from $73 to $34. The market cap currently stands at $6.8 billion.

Meanwhile, MELANIA suffered an even greater loss, with its value falling by 80% to only $2.56.

Disclaimers and Potential Rug-Pull

The lawmakers noted that the Trump meme coins came with a disclaimer stating that the “Trump Memes” are only meant to be a symbol of support for Trump’s ideals and beliefs and are not considered an investment opportunity or security. However, they questioned whether this disclaimer was enough to exempt the meme coins from federal law.

Warren and Auchincloss also raised concerns that the disclaimer could prevent investors from filing complaints in the event of a major loss. They asked regulators to commit to investigating the tokens if investors did file complaints.

The lawmakers alleged that 80% of the TRUMP meme coins are reportedly held by CIC Digital and Fight Fight Fight LLC, two companies affiliated with the Trump Organization. They claimed that these organizations could easily sell their holdings and gain enormous profits, while triggering a sharp decline in the coin’s value and leading to major financial losses for other investors.