Democratic lawmaker says TRUMP coin represents the ‘worst of crypto’

According to California Representative Maxine Waters, investors in the TRUMP token will be “left holding the bag” as only project insiders profit.
According to California Representative Maxine Waters, investors in the TRUMP token will be “left holding the bag” as only project insiders profit.

California Representative Maxine Waters, the top Democrat on the US House Financial Services Committee, echoed concerns from many crypto users and lawmakers accusing President Donald Trump of compromising legitimate projects in the industry by releasing his own memecoin.

In a Jan. 20 statement, Rep. Waters said the Official Trump (TRUMP) token represented the “worst of crypto” and provided an example for regulators and policymakers to be concerned about the future of the industry under the new presidential administration. The California lawmaker said investors would be “left holding the bag when Trump’s insiders sell,” alleging a rug pull.

“The coin’s terms and conditions block buyers from bringing class-action lawsuits even if they are swindled,” said Rep. Waters, adding:

“There is also a troubling lack of transparency around the buyers of this coin. Through his memecoin, Trump has created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his inner circle.”

Related: What the release of Trump’s memecoin signals for crypto regulations

The token was launched on Jan. 17, the same day as Trump’s wife, Melania, introduced her own branded memecoin. It has received widespread criticism — even among some diehard supporters — for allegedly attempting to capitalize on the office of the presidency. In the last 24 hours, the price of the coin has fallen more than 40%, from $67.87 to $38.54 at the time of publication.

Rep. Waters added:

“These actions by President Trump will also further taint the crypto industry, which has long fought for legitimacy and a level playing field with other financial institutions.”

Inauguration actions lack crypto

Though many executives representing large crypto firms said they would attend events related to Trump’s inauguration, the US president had yet to discuss digital assets or blockchain since taking office at 12:00 pm ET. The technology went unmentioned in his Jan. 20 acceptance speech, and — contrary to earlier reports — the administration’s list of priorities did not include crypto.

At the time of publication, Trump had not yet signed a series of executive orders he had pledged before taking office, including one that would potentially establish a strategic Bitcoin (BTC) reserve. He also promised to commute the sentence of Silk Road founder Ross Ulbricht, currently serving life in prison.

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