Senator Elizabeth Warren and Representative Jake Auchincloss have called on U.S. regulators to investigate the TRUMP and MELANIA meme coins launched by former President Donald Trump and First Lady Melania Trump. The lawmakers raised concerns about foreign influence , market manipulation , and significant financial risks to investors tied to these digital assets. These coins, released shortly before Trump’s inauguration, have seen dramatic price swings. The TRUMP coin surged from under $10 to $75 before plummeting to $32.44. Similarly, the MELANIA coin has shown extreme volatility, creating a risky environment for investors. Warren emphasized that these meme coins are speculative and heavily driven by internet trends, leaving consumers vulnerable. One of Warren’s major concerns is the potential for these coins to be exploited by foreign governments or individuals. Because they are publicly available, hostile nations could secretly acquire them to funnel money to the Trump family. This scenario, Warren argues, could compromise U.S. national security and pose ethical challenges. “Anyone, including adversaries of the United States, can purchase these coins, creating the risk of unregulated foreign influence. Meanwhile, Trump supporters bear the financial risks of investing in these coins,” Warren and Auchincloss stated in their letter. Another issue raised is the Trump family’s substantial ownership stake in these coins. While they stand to profit significantly, investors face the possibility of major losses. Additionally, the terms and conditions of the TRUMP and MELANIA coins include disclaimers that free the issuers from any liability in cases of fraud or misconduct. Warren criticized these disclaimers, calling them evidence of weak consumer protections. Warren urged the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and other federal agencies to investigate whether these coins violate securities or commodities laws. She also questioned how regulators plan to oversee such coins in the future to prevent further risks. In a separate move, Warren sent an open letter to Elon Musk, chair of the Department of Government Efficiency (DOGE), outlining suggestions to cut government spending. She proposed eliminating wasteful programs, closing tax loopholes for the wealthy, and improving efficiency to save taxpayers $2 trillion over the next decade.
