Two Massachusetts Democrats are urging federal regulators to investigate President Donald Trump's newly launched meme coins, arguing the digital tokens pose serious ethical and security risks, The Hill reported.
The Two Democrats sent a letter this week calling on federal agencies to investigate Trump's and first lady Melania Trump's recently unveiled meme coins, $Trump and $Melania.
The letter, signed by Sen. Elizabeth Warren, D-Mass., and Rep. Jake Auchincloss, D-Mass., was addressed to the Office of Government Ethics, the Department of the Treasury, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The lawmakers wrote that the tokens raise "unprecedented concerns" after being launched shortly before President Trump's inauguration.
"We write with deep concern about the decision by President Trump and First Lady Melania Trump to launch two meme coins, $TRUMP and $MELANIA, that allow them to earn extraordinary profits off his Presidency," the letter said.
In particular, the Democrats argued that "hostile nations" can buy the coins covertly, potentially exerting foreign influence over Trump.
During a press conference Tuesday, his first full day back in the White House, Trump was confronted about his latest venture. A reporter noted that the president made several billion dollars in recent days because of the crypto coin, to which he appeared indifferent, shrugging off the eye-popping figure.
The Democrats' letter also warned of potential "rug pulls," a term for schemes in which organizers abruptly abandon a digital token and leave investors "holding the bag."
The lawmakers said that Trump's organization retains an estimated 80% of the coin's shares and now accounts for a "whopping 89%" of the president's net worth. They claimed this arrangement could undermine his ability to lead key federal financial entities.
They concluded that the meme coins "present grave risks to President Trump's ability to impartially govern our nation."
Trump's venture into digital currency has drawn criticism from political opponents and crypto community members alike, who question the implications of a sitting president profiting from a highly speculative asset.
While no immediate official response followed, the liberal lawmakers urged regulators to move swiftly in determining whether Trump's new tokens violate any financial or ethical guidelines.