On January 22, two members of Congress called for an investigation into crypto tokens associated with the US president and first lady.
in a letter sent to federal regulators, senator Elizabeth Warren and representative Jake Auchincloss raised concerns about consumer risks, potential conflicts of interest and national security issues tied to these coins.
He TRIUMPH token, launched by Donald Trump, and the Melania Token, introduced by Melania Trump, both debuted around the time of a major political event. The letter noted that these tokens have increased Trump family net worth, now estimated at $58 billion.
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Warren and Auchincloss argued that tokens create a way for global investorsincluding those of adverse nations, to potentially influence American politics. They wrote:
Anyone, including leaders of hostile nations, can covertly purchase these coins, raising the specter of uninhibited and untraceable foreign influence on the President of the United States.
The letter too warned of the possibility of a “rug pull”where President Trump and his team were able to sell their tokens after a holding period, causing the value to crash and leaving smaller investors with losses.
Furthermore, the Trump Organizationcontrolled by the Trump family, owns 80% of Trump’s token, leaving only 20% in the hands of other investors. According to the letter, this unequal distribution Exposes smaller investors to financial risks due to price swings.
Recently, Senator Warren also sent an open letter to Elon Musk, Chairman of the Department of Government Efficiency (DOGE). What did the letter highlight? Read the full story.
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