Senator Elizabeth Warren has called for a review of the ethical and legal implications surrounding Donald and Melania Trump’s cryptocurrency tokens.

In a letter dated January 22, she raised concerns about possible conflicts of interest, foreign influence, and financial instability associated with the TRUMP and MELANIA tokens.

“We write with deep concern about President Trump and First Lady Melania Trump’s decision to launch two meme coins… that allow them to earn extraordinary profits off his Presidency,” Warren stated in the letter.

Warren Criticizes Trump’s Meme Coin Release

Historically skeptical of cryptocurrencies, Warren called attention to the TRUMP meme coin, highlighting its implications for funneling funds to Trump and its speculation around his political fortunes.

She highlighted the risk of foreign intervention, noting that hostile entities could buy these tokens to influence U.S. politics, pointing out that the Trump Organization controls 80% of the TRUMP token supply, increasing the danger of price fluctuations for other investors.

The TRUMP token was launched on January 20, shortly before Trump’s inauguration, enjoying an initial surge to $73, which fell to around $32 following a 57% decline. The MELANIA token also witnessed a decline, dropping from a peak of $13 to $2.60.

Warren’s letter, directed to key regulatory figures such as Acting SEC Chair Mark Uyeda and Acting CFTC Chair Caroline Pham, expressed concerns regarding Trump’s potential regulatory influence, noting his power to appoint agency leaders overseeing the crypto industry.

Request for Answers by February 4

Alongside Representative Jake Auchincloss, Warren has sought detailed responses by February 4 concerning the ethical rules around the Trumps’ holdings, regulations on foreign investments, and safeguards for retail investors.

Representative Maxine Waters has also condemned the meme coins as examples of the crypto industry’s worst practices.

Legal experts predict a number of lawsuits could arise from the launch of these tokens. Meanwhile, ARK Invest CEO Cathie Wood has distanced herself from such initiatives, indicating her focus is on cryptocurrencies with tangible utility, as the debate around ethics and regulation in the crypto realm intensifies.