Trump Coin sparks national security warnings
She highlighted the potential for Trump Coin to be exploited by hostile entities to secretly channel funds to Trump, raising significant corruption and financial misconduct risks.
California Representative Maxine Waters has raised alarms over the potential risks of the Trump Coin, a meme coin launched by Donald Trump shortly before his inauguration. Speaking at a House Financial Services Committee meeting, Waters criticised the Republican leadership for failing to prioritise oversight of the controversial cryptocurrency. She warned that the token could open the door to corruption and allow hostile entities to funnel money to the former president under the guise of digital transactions.
Waters highlighted that Trump’s coin, along with a similar project by Melania Trump, has faced criticism for leveraging the presidency to increase personal wealth. She suggested that the rapid increase in memecoin value, surpassing a $14 billion market cap, could expose investors to risks, particularly if major stakeholders sell off their positions.
Despite the controversy, the committee’s new chair, French Hill, has indicated plans to address regulatory gaps in the crypto space. Hill aims to establish clear rules for digital assets to encourage innovation while safeguarding financial systems. However, the growing scrutiny surrounding Trump Coin has intensified debates on whether stricter oversight is needed.
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