Elizabeth Warren Calls Foul on Donald Trump's Meme Coin, Urges Ethics and Regulatory Agencies to Investigate

Warren, who is the top Democrat on the Senate Banking Committee that oversees U.S. financial regulators, says the assets, including First Lady Melania Trump's own eponymous meme coin, pose conflict-of-interest hazards for the president and highlight the most destructive and volatile corner of the crypto sector.

Senator Elizabeth Warren is calling on the U.S. Office of Government Ethics and financial regulatory agencies to investigate the ethical and regulatory implications of President Donald Trump's meme coin, $TRUMP.

In a letter sent on Monday, Warren and Representative Jake Auchincloss (D-MA) highlighted the potential conflict-of-interest hazards posed by the assets, which also include First Lady Melania Trump's meme coin, $MELANIA. The lawmakers described the assets as the "most destructive and volatile corner of the crypto sector."

"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, all while President Trump's supporters are left to shoulder the risk of investing in $TRUMP and $MELANIA," the letter states.

The Trump meme coin was launched on Friday, the day before Trump's inauguration, and rapidly rose in value. According to the letter, Trump's company retains some 80% of the coins in circulation. The lawmakers noted that the coin's price movement opened up a possibility for Trump to make "extraordinary profits off his presidency."

The letter was sent to the Treasury Department, Commodity Futures Trading Commission and the Securities and Exchange Commission, each of which now has a new Trump pick at the helm. Notably, Trump is tasked with appointing the permanent heads of these regulatory agencies, which will then make decisions affecting the future of his crypto tokens.

"The statute vests broad authority in the President to appoint the heads of these agencies, and these officials will then make decisions that will affect the future of your crypto tokens," the letter reads.

None of the three federal agencies immediately responded to CoinDesk's requests for comment on the letter, or whether they're reviewing the tokens in any other capacity.

"In closing, we urge you to use your authority to investigate this matter thoroughly and swiftly," the lawmakers wrote. "$TRUMP and $MELANIA both present grave risks to President Trump's ability to impartially govern our nation — and to investors in these coins, who may be made victims of a rug pull scheme orchestrated by the Trump family."

The lawmakers' concerns echo those raised by other Democrats, including Representative Gerry Connolly (D-VA), who called for an investigation into Trump's crypto assets in a letter sent to his committee's Republican chairman one day into Trump's new term. Connolly additionally raised issues with World Liberty Financial and its ties to Tron blockchain founder Justin Sun.

Representative Maxine Waters (D-CA) also shared her alarm about Trump's coin, telling CoinDesk TV in an interview last week that she believes the assets are "illegal" and that Trump is "trying to find a way to enrich himself personally at the expense of the American people."