In a recent session of the US House Financial Services Committee, California Representative Maxine Waters expressed concerns regarding potential corruption and national security risks stemming from President Donald Trump's memecoin. Waters criticized the absence of cryptocurrency oversight in the Republican-led committee's agenda.
At the organizational meeting on January 22, aimed at setting guidelines for the 119th session of Congress, Waters, a Democrat and ranking committee member, underscored the urgency for oversight in the crypto sector. She highlighted it as "alarming" that the Republican majority's agenda omitted scrutiny over crypto firms and financial institutions.
Waters pointed to tech billionaires and CEOs who attended Trump's inauguration inside the US Capitol on January 20, while others endured freezing temperatures outside. She particularly criticized the launch of the Official Trump (TRUMP) token.
“Notably absent from the plan is any review of actions taken by the current President, actions that may pose a threat to national security,” Waters stated. “Hours before assuming office, President Trump and his family introduced memecoins that have surged in value. This reportedly increased his personal wealth and might serve as a channel for sanctioned individuals or hostile entities to funnel money to Trump directly.”
Retaining her position as the foremost Democrat on the committee, Waters noted Arkansas Representative French Hill's assumption of the chair position on January 3, following Patrick McHenry's departure. The committee remains among those in Congress expected to play a critical role in crypto policy, as many anticipate legislative actions to ensure regulatory clarity rather than aggressive enforcement on digital assets.
Chairman Hill articulated that the Republican "ambitious agenda" for the new Congress aims to enhance financial literacy and banking access. Concerning digital assets, he emphasized the committee’s focus on providing legal clarity, which could lead to guidelines involving the US Securities and Exchange Commission and the Commodity Futures Trading Commission:
“We aim to bring legal clarity to digital assets, empowering innovators to build decentralized financial products that foster societal empowerment and reinforce America's leadership in this financial technology.”
Launching the TRUMP token on January 17, shortly before assuming office, President-elect Trump initiated a trend followed by Melania Trump with her memecoin. These initiatives have faced criticism, with some suggesting attempts to exploit the presidency for personal gain.
On Inauguration Day, Waters voiced her concerns that the memecoin might defraud investors, leaving them "with worthless assets" if insiders liquidate their holdings:
“Trump’s memecoin has introduced a method to avoid national security and anti-corruption regulations, enabling parties to covertly transfer funds to him and his associates.”
After an initial price decline before the inauguration, the token's value later increased by over 400%, reaching a market capitalization exceeding $14 billion.