In a letter sent to federal regulators on Wednesday, noted crypto-critic Senator Elizabeth Warren and Representative Jake Auchincloss called for an investigation into the Trump and Melania meme coins launched on the Solana blockchain a day before Donald Trump’s second inauguration.
Warren and Auchincloss raised concerns about potential conflicts of interest, consumer risks, and national security implications of cryptos linked to Trump and First Lady Melania.
“The Trump family-controlled Trump Organization and its affiliates hold 80% of the TRUMP coin, leaving the remaining 20% of investors to bear the cost of coin’s price volatility,” the letter said.
Last week, then-President-Elect Trump launched the TRUMP meme coin, followed the day before the inauguration by Melania Trump’s Melania Meme coin.
Trump’s decision to join the meme coin craze sparked debate and criticism on Crypto Twitter.
> dropping TRUMP memecoin 2 days before becoming president is nasty work
> new SEC/DOJ guarantees no prosecution
> 80% of tokens vest to insiders DURING the presidency
> most ppl losing money will be MAGA who aren’t crypto native
> *should* be a crime but crime is legal now ig?— Coffeezilla (@coffeebreak_YT) January 18, 2025
“The launch has massively enriched Trump personally, enabled a mechanism for the crypto industry to funnel cash to him, and created a volatile financial asset that allows anyone in the world to financially speculate on Trump’s political fortunes,” Warren and Auchincloss wrote.
The Official Trump meme coin’s market capitalization stands at roughly $7 billion, with each token trading at $35.05, according to CoinGecko data. The Melania meme coin, meanwhile, has a market capitalization of over $415 million and is trading at $2.77.
The letter also noted that the meme coins contributed to a surge in the Trumps’ net worth, which now stands at $58 billion. Warren and Auchincloss expressed concern over the potential for foreign influence on the President through those financial assets.
“Anyone, including the leaders of hostile nations, can covertly buy these coins, raising the specter of uninhibited and untraceable foreign influence over the President of the United States,” the letter said. It also raised concerns about a potential rug pull.
“President Trump and his associated business entities that own 80% of TRUMP could dump their coins after a three-year period, generating huge sums for themselves while crashing the price of the coin for his supporters left holding the bag,” the letter said.
Warren and Auchincloss asked agency heads to address key questions about the meme coins and requested responses by February 4, 2025.
Those questions include:
- What ethics rules apply to the President and First Lady’s holdings in TRUMP and MELANIA?
- Will FinCEN provide Congress with annual reports on trading activity in TRUMP, MELANIA, and future Trump family coins?
- What authority do the SEC and CFTC have to address the risks meme coins pose to retail investors?
Warren and Auchincloss also took aim at the broader meme coin industry for failing to deliver any meaningful benefits to the wider financial ecosystem.
“These coins do not create new faster, cheaper, and safer payment rails,” the letter said. “These coins do not help people borrow more affordably. They do not improve the financial system in any way for consumers.”
Edited by Sebastian Sinclair
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