Elizabeth Warren and Jake Auchincloss Demand Investigation into Trump Meme Coins

beth Warren and Representative Jake Auchincloss are calling for a federal probe into Trump and Melania meme coins on the Solana blockchain. They want answers by February 4, 2025.

Senator Elizabeth Warren has called for a comprehensive investigation into the recently launched Trump-linked tokens, TRUMP and MELANIA.

In a January 22 letter addressed to U.S. financial regulators, Warren raised concerns about the ethical and legal implications of the tokens, including their potential to facilitate untraceable foreign influence over a U.S. president.

The Trump tokens have stirred controversy since their introduction. President Donald Trump unveiled his TRUMP token on January 17, days before assuming office. The cryptocurrency saw an initial surge, hitting $73 with a market capitalization exceeding $14.5 billion. However, its value has since dropped 57%, now trading at $32.

Meanwhile, Melania Trump launched the MELANIA token on January 19, which peaked at $13 before plummeting to $2.60.

Warren highlighted these tokens as a mechanism for the Trump family to profit personally, describing them as a “volatile financial asset” tied to Donald Trump’s political future.

She added that such tokens allow foreign actors, including leaders from hostile nations, to covertly purchase influence, posing significant risks to national security.

Warren’s letter also underscored concerns about conflict of interest and cryptocurrency regulation. As president, Trump has the authority to nominate leaders for agencies responsible for overseeing the crypto industry, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Warren questioned whether such decisions could remain impartial given the Trumps’ personal financial interests in the tokens.

“The launch of these tokens raises serious questions about whether governance decisions would prioritize public interest or personal gain,” Warren wrote.

Her letter, co-signed by Representative Jake Auchincloss, demanded clarity on ethical rules, measures to regulate foreign token purchases, and safeguards for retail investors.

The letter was directed to multiple regulatory bodies, including SEC Acting Chair Mark Uyeda and Acting Treasury Secretary David Lebryk. Responses to these inquiries are expected by February 4.

Representative Maxine Waters, a leading Democrat on the House Financial Services Committee, also expressed concerns about the Trump token.

“The Trump token embodies the worst of crypto: it’s opaque, could be used for illicit activity, and its value is completely manipulated,” Waters said.

“This is why we need strong rules to protect investors and ensure that the financial system isn’t used for legal or ethical violations.”

The introduction of tokens by public figures like Donald and Melania Trump has brought attention to the need for stricter oversight, particularly when crypto assets intersect with politics and governance.

Interestingly, Donald Trump’s apparent unfamiliarity with his own TRUMP token has also drawn attention.

During a January 21 press conference about a $500 billion artificial intelligence initiative, Trump admitted, “I don’t know much about it other than I launched it, other than it was very successful.”