Elizabeth Warren Flags Trump Tokens as Ethical and Financial Risks

Senator Elizabeth Warren is urging federal scrutiny of President Donald Trump's controversial meme coins, $TRUMP and $MELANIA, calling for the U.S. Office of Government Ethics and financial regulators to investigate their implications.

As the top Democrat on the Senate Banking Committee, Warren criticized the tokens for presenting significant conflict-of-interest risks and exposing the volatile nature of the crypto market. Joined by Representative Jake Auchincloss, Warren highlighted concerns that the coins could serve as a covert channel for foreign influence, potentially jeopardizing national security.

"President Trump and First Lady Melania’s wealth ballooned to $58 billion almost overnight," Warren and Auchincloss wrote in a joint letter. "These coins open the door for hostile nations and unknown actors to exert influence through untraceable transactions, leaving supporters vulnerable to financial losses."

The $TRUMP token, launched days before Trump’s inauguration, skyrocketed in value from $3 to $37 within a week. Reports indicate that Trump’s company retains control of 80% of the circulating supply, raising questions about profiting directly from his presidency.

Warren and Auchincloss have urged the Treasury Department, SEC, and CFTC—agencies now led by Trump appointees—to evaluate the ethical and regulatory dimensions of the tokens. The lawmakers warned of potential "rug pull" schemes, where investors might face significant losses while Trump’s family profits.

Other prominent Democrats, including Representatives Maxine Waters and Gerry Connolly, have echoed Warren’s concerns, emphasizing the need for transparency and regulation in this unprecedented intersection of politics and cryptocurrency.

Neither the Treasury Department nor the regulatory agencies have responded to requests for comment, leaving open questions about how the government will address the rise of these politically charged assets.