Maxine Waters Criticizes Trump's Entry Into the Cryptocurrency Market, Calls TRUMP Token 'the Worst of Crypto'

California Representative Maxine Waters has criticized President Donald Trump's recent entry into the cryptocurrency market, particularly the launch of the Official Trump (TRUMP) token.

Top Democrat on the House Financial Services Committee Maxine Waters has slammed President Donald Trump's recent foray into the cryptocurrency market with the launch of the Official Trump (TRUMP) token.

The congresswoman warned that the move could trigger increased regulatory scrutiny of the crypto industry and place investors at risk of losing their funds.

In a statement on Friday, Waters said she was against the Trump token, describing it as “the worst of crypto.”

“I am against the Trump coin. It is the worst of crypto. It might also lead to more attention from regulators on the crypto industry,” her statement read.

She expressed concern over the potential for manipulation in the coin's sales, given the involvement of Trump's associates in the project.

“This coin is being pushed by Trump's associates and it could be used to manipulate investors. Also, because it is a memecoin, it is not covered by any securities laws,” Waters stated.

The congresswoman also raised concerns about the anonymous nature of the token buyers, which could allow them to use the coin to evade national security and anti-corruption laws.

“There is also a troubling lack of transparency around the buyers of this coin. Anyone globally, even individuals who have been sanctioned by the U.S. or banned from our capital markets, can now trade and profit off of $TRUMP through various unregulated platforms,” her statement noted.

She further highlighted the lack of protection for investors in the coin's user agreement, which reportedly includes a clause barring customers who are defrauded from filing class-action suits.

“The user agreement also includes a provision that seems to be designed to prevent investors who are defrauded by this coin from filing class-action lawsuits to recoup their losses,” Waters stated.

The congresswoman also highlighted the possibility of Trump's insiders dumping their assets, which could leave investors with nothing in a rug pull scenario.

“Finally, investors should be aware that Trump and his close associates could dump their holdings of this coin at any time, leaving investors with nothing in a rug pull,” she said.

Trump's memecoin raises questions on crypto legitimacy

The launch of the TRUMP token has not remained unnoticed in the crypto space. While some have backed the coin as a fun concept, others, including Waters, have pointed out the potential to damage the industry's reputation.

In her statement, Waters highlighted the crypto industry's efforts to gain recognition and be treated similarly to classical financial organizations. She suggested that Trump and his team's actions could complicate these processes and lead to more stringent measures and scrutiny from lawmakers.

“The launch and sale of this coin is yet another reason why all Americans and policymakers should exercise extreme caution on crypto,” the congresswoman stated.

The TRUMP token was launched on January 17, followed by the same day, the launch of another memecoin by Trump's wife, Melania Trump.

Kiyosaki criticizes speculative trend

Author Robert Kiyosaki also criticized the TRUMP memecoin, stating that the current direction of the crypto industry towards meme coins is not beneficial for the development of crypto as the future of finance. Kiyosaki, who often supports such assets as gold, silver, and Bitcoin, noted that memecoins like TRUMP are a sign of a dangerous trend.

“What do I think about TRUMP COIN? Not much. Unfortunately, the whole crypto world is becoming a ‘tranny’ transforming from the ‘future’ to a ‘farce,'” Kiyosaki tweeted on January 18.

“I hold my course buying real Gold, real silver, and real Bitcoin. As a personal rule I do not invest in any ETFs. I am old and old people get wiped out in speculative manias. Good Luck.”

There has also been criticism of the distribution of the TRUMP token, with assertions that 80% of the tokens are located in Trump's wallet and no lock-up period has been set.

Balaji Srinivasan, the former CTO of Coinbase, called meme coins a “zero-sum lottery.” Kiyosaki's statement on Friday seems to align with this view.

“Trump needs to fire his crypto advisors, from top to bottom, and replace them with people who know what they are doing,” said Gabor Gurbacs, founder of PointsVille.

“The meme coins are costing the US, the presidency, his family a lot of credibility, and the consequences of this haven't even started.”