California Representative Maxine Waters has criticized President Donald Trump’s recent entry into the cryptocurrency market, particularly the launch of the Official Trump (TRUMP) token. Waters, the top Democrat on the House Financial Services Committee, called the move potentially disastrous for investors and regulators.

In a statement, Waters stated that she was against the Trump token, calling it “the worst of crypto.” She also said that the project might result in increased focus on the industry by the regulatory authorities. According to Waters, the release of the memecoin triggered concern over possible manipulation, particularly given the involvement of Trump’s associates. She stated, 

Waters also complained about the anonymous nature of the token buyers, as they could potentially use the token to evade laws on national security and anti-corruption. She stated, “There is also a troubling lack of transparency around the buyers of this coin. Anyone globally, even individuals who have been sanctioned by the U.S. or banned from our capital markets, can now trade and profit off of $TRUMP through various unregulated platforms.”

She also questioned the coin’s user agreement, which seems to bar customers who are defrauded from filing class-action suits. The congresswoman said that investors could be left with nothing when Trump’s insiders allegedly dump their assets, which she described as a classic case of a rug pull.

Trump’s memecoin raises questions on crypto legitimacy

The launch of the TRUMP token has not remained unnoticed in the crypto space. Although some have backed the coin as a fun concept, others, including Waters, stated that it could harm the industry’s reputation. 

Waters also noted that the crypto industry has been advocating for recognition and comparing it with the classical financial organizations. She noted that Trump and his team could actually complicate these processes and result in more strict measures and scrutiny from lawmakers.

“The launch and sale of this coin is yet another reason why all Americans and policymakers should exercise extreme caution on crypto.”

The token was launched on January 17th, followed by the same day, the launch of another memecoin by Trump’s wife, Melania Trump. 

Kiyosaki criticizes speculative trend

Author Robert Kiyosaki also criticized the TRUMP memecoin, stating that the current direction of the crypto industry towards meme coins is not beneficial for the development of crypto as the future of finance. Kiyosaki, who often supports such assets as gold, silver, and Bitcoin, noted that memecoins like TRUMP are a sign of a dangerous trend.

What do I think about TRUMP COIN?Not much. Unfortunately, the whole crypto world is becoming a “tranny” transformimg from the “future” to a “farce.”I hold my course buying realGold, real silver, and real Bitcoin.As a personal rule I do not invest in any ETFs.I am old…

— Robert Kiyosaki (@theRealKiyosaki) January 19, 2025

There has also been criticism of the distribution of the TRUMP token, with assertions that 80% of the tokens are located in Trump’s wallet and no lock-up period has been set. 

Balaji Srinivasan, the former CTO of Coinbase called meme coins ‘zero-sum lottery’. He said that the price of such coins will slowly go down, and the last traders will be left with losses.

“Trump needs to fire his crypto advisors, from top to bottom, and replace them with people who know what they are doing. The meme coins cost the US, the presidency, and his family a lot of credibility, and the consequences haven’t even started.”

Gabor Gurbacs, founder of PointsVille.

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