Elizabeth Warren Calls for Investigation of Trump and Melania Meme Coins
Senator Elizabeth Warren and Representative Jake Auchincloss have requested an investigation by U.S. regulators into the TRUMP and MELANIA meme coins linked to former President Donald Trump and First Lady Melania Trump. Key concerns include:
- Foreign influence on coin ownership
- Market manipulation risks
- Financial risks for investors
The TRUMP coin experienced volatility, rising from under $10 to $75 before dropping to $32.44. The MELANIA coin also demonstrated extreme price fluctuations. Warren highlighted that these coins are speculative, heavily influenced by internet trends, exposing consumers to potential losses.
Warren raised alarms about foreign entities potentially acquiring these coins, which could threaten U.S. national security. She noted that both Trump supporters and adversaries can purchase these assets, increasing the risk of unregulated foreign influence.
Concerns were also voiced regarding the Trump family's ownership of these coins, which may lead to significant profits for them while posing major financial risks for investors. Additionally, the coins' disclaimers exempt issuers from liability in cases of fraud or misconduct, indicating weak consumer protections.
Warren urged the SEC and CFTC to investigate possible violations of securities or commodities laws and called for regulatory measures to mitigate future risks.
In a separate action, Warren addressed Elon Musk with suggestions aimed at cutting government spending, proposing to eliminate wasteful programs and close tax loopholes for the wealthy to save taxpayers $2 trillion over the next decade.