On the day of the inauguration, the newly-elected and 47th president of the U.S., Donald Trump had to face criticism for his memecoin ‘TRUMP’ that has become an internet sensation after its launch.
Congresswoman Maxine Waters, the ranking Democrat on the House Financial Services Committee, has issued a strong rebuke against the President’s latest venture into cryptocurrency. Just days before his second inauguration, he launched his official memecoin, which has multiplied his “personal wealth 10-fold from unknown buyers around the world”.
TRUMP Memecoin Poses Threat to National Security
Waters slammed the project, saying it is a prime example of the unregulated and speculative nature of the crypto industry, calling it the ‘worst of crypto’. According to her, the memecoin serves no real purpose and derives its value solely from Trump’s name and political position.
She stated,“ Investors, who may see this coin as a way to get rich quick, may be overpaying for something of dubious value, and will be left holding the bag when Trump’s insiders sell.”
Adding to her concerns, Waters also mentioned the lack of investor protections around the project. According to the report, the coin’s and conditions explicitly prevent buyers from pursuing class action lawsuits, even in a class of fraud or market manipulation.
Beyond financial risks, Waters highlighted potential national security risks posed by Trump’s new crypto venture. She stated, he has “created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his inner circle.”
The unique nature of blockchain transactions and unregulated trading platforms could allow foreign adversaries, including sanctioned individuals and entities from countries like Russia and China, to covertly funnel money into Trump’s orbit. She warned that corporations, allied nations seeking to curry favor, and even hostile actors could exploit this mechanism to gain influence over U.S. policy.
She stated, “These actions by President Trump will also further taint the crypto industry, which has long fought for legitimacy and a level playing field with other financial institutions. The launch and sale of this coin is yet another reason why all Americans and policymakers should exercise extreme caution on crypto, and why Congress must be vigilant for when the rug is pulled out from under the Americans invested in this scheme.”
