Senator Elizabeth Warren has called on U.S. financial regulators and the government ethics office to investigate potential ethical and legal issues surrounding Donald and Melania Trump’s recent foray into cryptocurrency with the launch of memecoins TRUMP and MELANIA.

In a letter dated January 22, Warren expressed concerns over the former president and first lady profiting from their tokens, highlighting possible conflicts of interest and security risks. “These memecoins have not only enriched Trump personally but also enabled a mechanism for the crypto industry to funnel cash to him, creating a volatile financial asset tied to his political fortunes,” Warren stated.

Launched just days before Trump’s inauguration on January 20, the Official Trump (TRUMP) memecoin initially surged to a valuation of $14.5 billion, with a peak price of $73, before dropping 57% to $32. Similarly, Melania Trump’s MELANIA token peaked at $13 and has since declined to $2.60.

Warren raised concerns about untraceable foreign investments in these tokens, alleging they could facilitate “unregulated foreign influence over the President of the United States.” The senator also flagged the potential conflict of interest, noting Trump’s power to appoint regulators overseeing the cryptocurrency sector.

The letter, co-signed by Representative Jake Auchincloss, was addressed to key financial regulators, including Acting SEC Chair Mark Uyeda and Acting Treasury Secretary David Lebryk. Warren and Auchincloss demanded clarity by February 4 on the ethical guidelines governing the Trumps’ token holdings, measures to monitor illicit transactions, and protections for retail investors.

Critics, including Representative Maxine Waters, have condemned the Trump memecoins as emblematic of the cryptocurrency sector’s darker side. Meanwhile, ARK Invest CEO Cathy Wood distanced her firm from such tokens, stating, “We’ve stayed away from memecoins. Our focus is on the big three.”

Also Read: Crypto Markets Celebrate As Trump Leads with 70% Polymarket Odds-Bitcoin Up 5%, Altcoins Add $50 Billion

With lawsuits reportedly looming, the controversy over the Trump family’s memecoins is poised to spark intense debate over the intersection of cryptocurrency and political ethics.

Disclaimer:The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of FXRift.com . Before making any investment decisions, you should always conduct your own research. FX RIFT is not responsible for any financial losses.: