California Representative Maxine Waters, a leading Democrat and ranking member of the House Financial Services Committee, has raised alarms about a cryptocurrency project linked to former President Donald Trump. She warned that the initiative could facilitate corruption and pose threats to national security.
During a Jan. 22 meeting to finalize the committee’s rules and oversight plan for the 119th session of Congress, Waters expressed concern over the absence of measures addressing cryptocurrency oversight. She criticized the Republican-led committee’s silence on crypto regulation, particularly given their majority control in the House.
Waters drew attention to the Official Trump (TRUMP) token, launched just before Trump’s inauguration, accusing the former president of leveraging the cryptocurrency for personal gain. The memecoin’s debut coincided with tech billionaires and CEOs attending Trump’s swearing-in ceremony inside the Capitol, while others braved the cold outdoors.
“The lack of oversight over the current president’s financial activities, including ventures like the Trump token, raises serious questions about potential conflicts of interest and national security risks,” Waters said.
She further alleged that Trump and his family had used the cryptocurrency to enrich themselves and possibly provide a secret channel for foreign actors or sanctioned entities to fund Trump directly:
“Just hours before taking office, Trump launched a memecoin that has since skyrocketed in value. This opens the door for questionable financial transactions that could compromise national security.”
Committee Leadership Shifts Amid Crypto Oversight Challenges
The committee’s leadership changed hands earlier this month, with Arkansas Representative French Hill stepping in as chair, succeeding Patrick McHenry. Waters retained her position as the committee’s top Democrat.
Hill emphasized the Republican agenda’s focus on financial literacy and expanding access to banking services. On digital assets, he promised to prioritize regulatory clarity for cryptocurrencies and hinted at potential updates for agencies like the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
“Our goal is to establish clear legal frameworks for digital assets, enabling innovation while ensuring America remains a leader in financial technology,” Hill stated.
Criticism of Trump’s Memecoin as a Financial Gambit
The Trump token, launched on Jan. 17, just days before Melania Trump introduced her own cryptocurrency, has been met with skepticism. Critics, including some Trump supporters and crypto enthusiasts, have labeled the project a cash grab.
Waters accused Trump of creating a mechanism to bypass anti-corruption and security laws, allowing anonymous financial contributions from dubious sources.
“Trump’s memecoin could leave investors vulnerable to exploitation if insiders decide to sell off their stakes, leaving ordinary buyers with worthless tokens,” Waters said on Jan. 20.
Despite its controversial launch, the TRUMP token’s value surged by more than 400% and now boasts a market capitalization exceeding $14 billion. However, its long-term stability and impact on US financial oversight remain uncertain.
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