Senator Warren Calls for Investigation into Trump Family’s Crypto Ventures

Senator Warren Calls for Investigation into Trump Family’s Crypto Ventures

Senator Elizabeth Warren has urged U.S. financial regulators and the Office of Government Ethics to investigate ethical and legal concerns surrounding cryptocurrency tokens launched by Donald Trump and Melania Trump.

“We are deeply troubled by former President Trump and First Lady Melania Trump’s decision to introduce two memecoins, TRUMP and MELANIA, which appear designed to generate significant personal profit from his presidency,” Warren wrote in a letter dated January 22.

Warren, a leading Democrat on the Senate Banking Committee and a prominent crypto skeptic, claimed that the TRUMP memecoin has directly benefited Trump financially while enabling the crypto industry to channel funds to him. Additionally, she argued that the tokens have created a highly volatile financial asset tied to Trump’s political fortunes.

She also expressed concerns about potential national security risks, stating that foreign adversaries could covertly purchase the memecoins, posing “a serious threat of untraceable foreign influence over the former President of the United States.”

Donald Trump unveiled the Official Trump (TRUMP) token in a surprising announcement just days before his inauguration on January 20. Following its launch, the token skyrocketed to an all-time high of $73, with a market value exceeding $14.5 billion. However, the price has since plunged 57%, currently trading at around $32.

The following day, on January 19, Melania Trump introduced her own memecoin, dubbed Melania Meme (MELANIA), which briefly peaked at $13 before falling to $2.60.

Warren highlighted that the Trump Organization and its affiliates retain 80% of the TRUMP token supply, leaving retail investors to shoulder the brunt of its price volatility. She also raised concerns about conflicts of interest, noting that Trump’s presidential appointments to financial regulatory agencies could undermine impartial governance in the crypto space.

The letter, addressed to key regulatory leaders—including Acting Securities and Exchange Commission Chair Mark Uyeda and Acting Treasury Secretary David Lebryk—called for clarity on several issues. Warren and Representative Jake Auchincloss have requested responses by February 4 regarding ethical guidelines for the Trumps’ crypto holdings, mechanisms to regulate foreign and illicit purchases, legal definitions of memecoins, and investor protection measures.

Representative Maxine Waters, a senior Democrat on the House Financial Services Committee, denounced the TRUMP token as “the worst example of crypto.”

Legal challenges may also be on the horizon, as experts predict a wave of lawsuits related to the Trump family’s crypto ventures.

Meanwhile, ARK Invest CEO Cathie Wood dismissed such tokens, emphasizing her focus on cryptocurrencies with utility. “We’ve avoided memecoins altogether. Our attention is on the big three,” she said.