American senator Elizabeth Warren (D-MA) faces journalists during a break in a bipartite artificial intelligence forum (AI) for all American Senators at the American Capitol in Washington on September 13, 2023.
Julia Nikhinson | Reuters
Two superior Democrats in Congress asked several regulators to examine the ownership of the documents even published by President Donald Trump and First Lady Melania Trump.
Senator Elizabeth Warren and representative Jake Auchincloss, both from the Massachusetts, raised problems concerning the first couple using their respective offices for enrichment, as well as the potential for “Rug-Pull” scams similar to what happened with The other tokens, as as possible conflicts of interest.
“We write in depth the decision of the decision of President Trump and the first lady Melania Trump to launch two pieces even, $ Trump and $ Melania, who allow them to make extraordinary profits from his presidency,” said the couple in A letter obtained by CNBC .com.
“These parts do not create new, faster, cheaper and safer payment rails. These parts do not help people borrow more affordable. They do not improve the financial system for consumers in any way,” They added.
Digital tokens have already generated billions of dollars on paper for the Trump family.
THE website For $ Trump Coin, 80% of the offer is owned by the Trump organization and the affiliates.
The digital token, which launched Friday evening, almost immediately stimulating The personal net value of the president of tens of billions of dollars on paper. It is now negotiated at around $ 37, a decrease of 50% compared to its peak shortly after the launch. Likewise, the token $ Melania plunged 80% compared to its summit on weekends, currently negotiating below $ 3.
The same parts are a subset of cryptocurrencies linked to the culture of the internet memes. They have no intrinsic value and often undergo overvoltages at quick prices due to celebrity mentions. Although popular among crypto traders, these tokens are notoriously volatile because they lack underlying assets to support their value.
The legislators cited pieces of high -level volatile memes such as the Hawk Tuah offer from Hailey Welch as well as Dogecoin, Pikamoon and Bonk.
Before the first family launched its tokens, the New York Financial Services Department published a consumer alert Warning concerning “virtual currencies based on feelings” or even parts, highlighting their extreme volatility, their lack of regulations and their high risk of fraud, including pump and delight diets. The department has warned that these parts are often controlled by a small group of initiates, created on license -free platforms and subjects to significant price handling.
To prevent an immediate sale, the coins $ Trump and $ Melania are subject to a multi -year acquisition calendar, ensuring that the majority of tokens cannot be liquidated at the same time. But even without selling tokens, Jamming Executive analyst and crypto, conor grogan, esteem that The Trump team generated $ 58 million in negotiation costs on the first day only.
“This piece of the same could harm the very people as President Trump says that he is working to help,” wrote Warren and Auchincloss, adding that the president and his associated commercial entities could pour their parts during the three -year unlock period “, generating huge sums for themselves by crushing the price of the medal for his supporters who left the bag.”
CNBC.com contacted Trump’s camp to comment.
Rights of owners and other concerns
Democratic leaders also emphasize that the terms and conditions of the two memes tokens “prevent buyers from joining collective appeals against the medal or its issuers”.
The letter, which is addressed to the leaders of the Securities and Exchange Commission, to the Commodity Futures Trading Commission, to the Ministry of the Treasury and to the US Office of Ethics of the Government, also highlights conflicts of potential interests.
As president, Trump is responsible for the appointment of managers of the main financial regulation agencies, including the SEC and the CFTC, which apply laws against cryptographic companies.
“This creates an inevitable conflict of interest, because it will be able to benefit directly from the sale of tokens while defining the policy on how these markets are regulated,” added Warren and Auchincloss.
Since his victory in November, Trump has focused on the appointment of government leaders who have supported the cryptocurrency sector.
Paul Atkins was appointed to chair the Securities and Exchange Commission. Atkins, a former SEC commissioner, is known to defend policies adapted to the market and oppose heavy regulations. If he is confirmed, he will succeed Gary Gensler, whose aggressive application of cryptographic regulations made him a figure in industry.
Earlier this week, the SEC announced the training of a new “crypto working group”, led by Commissioner Hester Peirce. Trump’s choices to direct the trade and the treasure were also pro-Crypto in their commercial transactions.
Beyond financial risks, the letter also reported concerns about national security.
World nature and largely anonymous of the cryptocurrency markets could allow foreign players to buy large amounts of parts of $ Trump or $ Melania parts to obtain an influence with the administration. Legislators have warned that this could violate the constitution’s emoluments clause, which prohibits government officials from accepting payments or donations to foreign entities without approval from the congress.
“But almost anyone in the world can buy these parts, which raises concerns about the use of coins by foreign people and governments to buy an influence on President Trump and his family,” said The letter.