Key Takeaways:
- Rep. Maxine Waters criticized the TRUMP token, warning it could pose national security risks and enable corruption through anonymous transactions.
- The memecoin, launched just before Trump’s inauguration, has surged 400% in value, despite heavy criticism and concerns over a potential “rug pull.”
- The divided U.S. House Financial Services Committee underscores the ongoing debate over crypto oversight, with differing priorities between Republicans and Democrats.
California Representative Maxine Waters has raised national security concerns over the TRUMP token, a cryptocurrency linked to former President Donald Trump.
Speaking at a Jan. 22 U.S. House Financial Services Committee meeting, Waters criticized the Republican agenda for overlooking potential conflicts of interest and failing to prioritize oversight of crypto firms.
Ranking Member @RepMaxineWaters' statement on $TRUMP meme coin: "This Represents the Worst of Crypto" | https://t.co/3UH4Ec1ZIo pic.twitter.com/PoyfcMOus1
— U.S. House Committee on Financial Services (@FSCDems) January 20, 2025
She alleged the TRUMP token, launched on Jan. 17, just two days before Trump’s inauguration, provides a “backdoor” for sanctioned entities, hostile governments, and other bad actors to transfer funds anonymously to Trump and his circle.
Waters warned of potential misuse, accusing Trump of creating a way to circumvent anti-corruption laws while enriching himself.
She also highlighted investor risks, such as a possible “rug pull”, which could leave buyers with heavy losses.
Despite these concerns, the TRUMP token has risen over 400% in value, reaching a market capitalization of more than $14 billion, though some Trump supporters and crypto enthusiasts have criticized it as a blatant money grab.
Meanwhile, Republican lawmakers, led by Arkansas Representative French Hill, have prioritized regulatory clarity for digital assets, aiming to foster decentralized innovation.
The divide in the committee underscores broader debates over crypto oversight, transparency, and the ethical implications of financial tools linked to political figures.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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