California Representative Maxine Waters has expressed severe worries about the potential ramifications of the TRUMP Coin, a cryptocurrency created by former President Donald Trump. During a January 22 meeting of the US House Financial Services Committee, Waters chastised Republican lawmakers for omitting crypto businesses and other financial institutions from their agenda.
The Democrat legislator contended that this omission might have serious implications for national security, particularly given the potential conflicts of interest regarding Trump’s engagement with memecoin. Waters emphasized that the project, which began just days before Trump took office, might have served as a conduit for improper financial activities involving sanctioned individuals and hostile states.”Hours before taking office, Trump and his family launched memecoins that skyrocketed in value, reportedly boosting his personal wealth and creating a potential backdoor for illicit financial activities,” according to Waters. She also cautioned that the scheme could allow for anonymous transfers of funds to Trump and his friends, weakening anti-corruption laws.
Criticism from the crypto and political spheresThe introduction of TRUMP Coin has sparked outrage not only among political opponents but also throughout the cryptocurrency world. Many cryptocurrency fans and industry experts have called the endeavor a “cash grab” and expressed concern that it will ruin the sector’s reputation.Tom Schmidt, a partner at crypto venture firm Dragonfly, described the idea as “grifty and cheap,” while others in the sector were concerned that Trump’s direct affiliation with memecoins would jeopardize efforts to legitimate cryptocurrency regulation. Nic Carter, a Trump supporter and partner at Castle Island Ventures, stated that such activities make the crypto business appear unprofessional, hampering regulatory improvements.
Financial Oversight in QuestionWaters also chastised the Republican-led committee for failing to prioritize monitoring of financial institutions, large banks, and cryptocurrency startups. She expressed concern that tech billionaires and CEOs who attended Trump’s inauguration appeared to have special access to the administration.”It’s alarming that Republicans are silent on reviewing the actions of the current president, especially potential conflicts of interest that threaten national security,” she told reporters. A lack of financial monitoring, according to Waters, could allow a select elite to manipulate the system, leaving average Americans behind.Moving Forward.Meanwhile, Trump’s administration appointed acting SEC Chairman Mark Uyeda.
Uyeda has pledged to guide the agency toward clear and realistic cryptocurrency laws, including the formation of a specialized crypto task force.
Despite these advances, the TRUMP Coin scandal continues to raise doubts about crypto regulation and the larger financial system. With government and corporate leaders divided, the future of crypto governance in the United States is uncertain.
