California Representative Maxine Waters, a Democrat and ranking member of the U.S. House Financial Services Committee, has raised concerns about President Donald Trump’s recently launched memecoin, the TRUMP token.
Waters warned that the TRUMP token, launched days before Trump’s inauguration, could open avenues for corruption and pose national security risks. She alleged the token might allow bad actors, including sanctioned individuals and hostile governments, to funnel money to Trump and his inner circle anonymously. Waters described the situation as “alarming” during a Jan. 22 committee meeting, criticizing the Republican majority for omitting oversight of crypto firms and financial institutions from their agenda.
The TRUMP token was launched on Jan. 17, 2025, with Trump’s inauguration held on Jan. 20. Waters voiced her concerns three days later during a House Financial Services Committee organizational meeting.
The concerns were raised during a congressional meeting in Washington, D.C., highlighting potential national and global implications.
Waters argued that the memecoin launch represents a potential conflict of interest and could undermine anti-corruption and national security laws. She also criticized the Republicans’ lack of oversight in their proposed agenda, suggesting that crypto regulations should address such issues.
Waters alleged that the memecoin could be used to circumvent financial transparency and accountability measures. She further claimed it might result in investors losing money if insiders sold off their stakes, likening the situation to a potential rug pull.
Meanwhile, Arkansas Representative French Hill, the new chair of the committee, emphasized the Republicans’ focus on establishing legal clarity for digital assets, aiming to support innovation while ensuring compliance with financial regulations.
The TRUMP token’s value initially dropped before Trump’s inauguration but has since surged over 400%, reaching a market capitalization of more than $14 billion. The launch of the token, alongside Melania Trump’s memecoin, has drawn criticism for potentially exploiting the office of the presidency for personal gain. The controversy signals an increasing need for crypto oversight as lawmakers grapple with the implications of digital assets.
