On January 22, two members of Congress called for an investigation into crypto tokens associated with the US President and First Lady.
In a letter sent to federal regulators, Senator Elizabeth Warren and Representative Jake Auchincloss raised concerns about consumer risks, potential conflicts of interest, and national security issues tied to these coins.
The TRUMP token, launched by Donald Trump, and the MELANIA token, introduced by Melania Trump, both debuted around the time of a major political event. The letter noted that these tokens have boosted the Trump family’s net worth, now estimated at $58 billion.
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Warren and Auchincloss argued that the tokens create a way for global investors, including those from adversarial nations, to potentially influence US politics. They wrote:
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 letter also warned of the possibility of a “rug pull”, where President Trump and his team could sell their tokens after a waiting period, which caused the value to collapse and left smaller investors with losses.
Furthermore, the Trump Organization, controlled by the Trump family, owns 80% of the TRUMP token, leaving only 20% in the hands of other investors. According to the letter, this uneven distribution exposes smaller investors to financial risks due to price swings.
Recently, Senator Warren also sent an open letter to Elon Musk, the chair of the Department of Government Efficiency (DOGE). What did the letter highlight? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
