Elizabeth Warren urges federal scrutiny of TRUMP and MELANIA coins

U.S. Regulators Urged to Probe TRUMP and MELANIA Meme Coins

Senator Elizabeth Warren and Representative Jake Auchincloss have called for an investigation into the TRUMP and MELANIA meme coins created by Donald and Melania Trump. They cite concerns regarding:

• Foreign Influence: The coins are publicly available, potentially allowing foreign entities to send funds to the Trump family, raising national security and ethical concerns.
• Market Manipulation: The coins have exhibited extreme price volatility, increasing investment risk for consumers.
• Investor Risks: The speculative nature of these coins, driven by online trends, puts investors at financial risk.

Warren expressed particular alarm over the potential for foreign exploitation. She emphasized that anyone, including adversaries, could purchase the coins, raising the risk of unregulated foreign influence while supporters face financial risks.

Additionally, the Trump family's significant ownership of these coins has raised concerns. While they may personally benefit, investors could face substantial losses. The coin's terms include disclaimers limiting issuer liability in cases of fraud or misconduct, which Warren criticized as inadequate consumer protection.

Warren has requested that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) investigate potential violations of securities or commodities laws. She has also inquired about future regulatory measures to mitigate risks associated with such coins.

In a separate move, Warren sent an open letter to Elon Musk, outlining proposals to reduce government spending. She suggested cutting wasteful programs, closing tax loopholes for the wealthy, and improving efficiency to save taxpayers $2 trillion over the next decade.