Maxine Waters Raises Concerns Over Trump's Memecoin and National Security

According to Cointelegraph, California Representative Maxine Waters, a Democrat and ranking member of the US House Financial Services Committee, has expressed concerns regarding President Donald Trump's memecoin, suggesting it could lead to corruption and pose risks to national security. During a committee meeting on January 22, Waters criticized the Republicans' oversight plan for the 119th session of Congress, highlighting the absence of scrutiny over crypto firms and financial institutions. She pointed out the presence of tech billionaires and CEOs at Trump's inauguration on January 20, while others were left outside in the cold, and criticized the launch of the Official Trump (TRUMP) token. Waters emphasized the lack of oversight on actions taken by the current President, including potential conflicts of interest that could jeopardize national security. She noted that hours before Trump assumed office, he and his family launched memecoins that surged in value, potentially increasing his wealth and providing a means for sanctioned individuals and hostile governments to funnel money to Trump. Waters retained her position as the top Democrat on the committee, while Arkansas Representative French Hill became the chair on January 3, succeeding Patrick McHenry. The committee is expected to play a significant role in shaping crypto policy, with many in the industry anticipating efforts to establish regulatory clarity rather than imposing strict regulations on digital assets. French Hill stated that the Republicans' agenda for the new Congress includes expanding financial literacy and banking opportunities. Regarding digital assets, Hill emphasized the importance of establishing legal clarity, suggesting potential rules for the US Securities and Exchange Commission and Commodity Futures Trading Commission. He expressed the intention to provide innovators with tools to develop decentralized financial products and services, ensuring America's leadership in financial technology. The TRUMP token, launched by Trump on January 17, has faced criticism, even from some crypto enthusiasts and Trump supporters, for allegedly exploiting the presidency for financial gain. On January 20, Waters warned that Trump might attempt to deceive investors in the memecoin, leaving them at a loss if insiders sold their stakes. She argued that the memecoin could circumvent national security and anti-corruption laws, allowing anonymous transfers of money to Trump and his associates. Despite a significant price drop before Trump's inauguration, the coin's value has since increased by over 400%, reaching a market capitalization exceeding $14 billion.