Trump Coin May Pose a National Security Threat: US Lawmakers

Maxine Waters, a Democratic Party member and Representative from California, has expressed deep concerns about the Republican legislators' plans for the 119th session of Congress. During the meeting of the U.S. House Financial Services Committee on January 22, Waters emphasized the lack of financial oversight in the Republican Party's legislative agenda, especially regarding cryptocurrencies, financial institutions, and policies related to President Donald Trump.

Concerns about TRUMP Memecoin and national security One of Waters' main criticisms revolves around the TRUMP memecoin, which was launched by Trump and his family just before his inauguration as president. This currency, which has seen a significant increase in value, raises questions about transparency and potential conflicts of interest. Waters warns that the involvement of a sitting president in the cryptocurrency market could open the door to corruption and pose risks to national security. "A few hours before Trump took office, he and his family released meme coins that skyrocketed in value, believed to increase his personal wealth and potentially pave the way for sanctioned individuals, hostile governments, and other bad actors to directly give money to Trump," Waters declared. This criticism comes amid increasing skepticism in the cryptocurrency industry. Many had hoped for a president supportive of cryptocurrency but not expecting direct involvement. Tom Schmidt, a partner at Dragonfly, a cryptocurrency venture capital firm, described the situation as "dismal and cheap," reflecting the disappointment of industry leaders. The departments in the cryptocurrency community While Trump's relationship with the cryptocurrency market was initially seen as a potential advantage for the industry, it instead highlighted deep divisions. Critics argue that focusing on meme coins undermines legitimate efforts to legalize the industry. Nic Carter, a partner at Castle Island Ventures and a Trump supporter, expressed concern, saying, "It undermines our credibility; it makes it look completely unserious." Some people in the industry even joke about the lack of Gary Gensler, former chairman of the SEC, who is known for his strict enforcement of cryptocurrency companies under the Biden administration. They are concerned that Trump's close relationship with meme coins could undermine the meaningful regulatory reforms of the industry. Steps towards cryptocurrency regulations To address increasing concerns, Trump appointed SEC Commissioner Mark Uyeda as the director of the agency. Uyeda announced the formation of a new cryptocurrency task force to develop a "reasonable oversight path." This move aims to address skepticism and provide clearer guidance for the cryptocurrency industry. In addition, the Trump family business recently reached an ethical agreement to limit the president's involvement in the Trump Organization during his term. However, critics still doubt the effectiveness of these measures. Financial supervision is lacking in the Republican Party's plans. Waters also criticized the Republican Party for neglecting to oversee large financial institutions. She noted the lack of regulation of big banks, Wall Street companies, and tech billionaires under the current administration. Highlighting the attendance of some billionaires, including Elon Musk, at Trump's inauguration, Waters expressed concern about the favoritism and influence of wealth in government decisions. "The American public did not overlook the fact that when Trump transferred his inauguration inside, there were only a few empty seats to attend, but the billionaire club all had a seat," Waters said. She accused these elites of seeking opportunities to exploit the country while the committee and Congress did not hold them accountable. Promote economic justice In her concluding speech, Waters emphasized the need for a financial system that serves all Americans rather than prioritizing Wall Street and the wealthy. "Everyone deserves a safe, affordable, and honest place to live," she argued, calling for an economy that prioritizes Main Street over the interests of the extremely wealthy. As the debate over cryptocurrencies and financial regulation continues, Waters' comments highlight the challenges of ensuring transparency and fairness in the rapidly evolving financial landscape. Monitoring Trump's involvement in cryptocurrencies and the Republican Party's policy agenda may remain a key issue in the months ahead.