Trump delves deeper into crypto, Warren warns of manipulation risks

Democratic Senator Elizabeth Warren has sounded the alarm about the growing influence of President Donald Trump in the financial sector, particularly through projects focused on the crypto market.

In a letter sent to the U.S. Securities and Exchange Commission (SEC) on April 25, Warren questioned the agency about how it oversees the ETFs issued by Trump's media company, highlighting serious concerns about potential conflicts of interest.

Previously, she had also requested to conduct an official investigation into President Donald Trump's recent tariff strategy, arguing that his ultimate goal was to distort the market in favor of wealthy donors.

Warren condemns Trump's actions

"All decisions and actions of the SEC related to Trump Media & Technology Group as well as the financial interests of President Trump need to be carefully monitored to ensure they are not influenced by political interference or the influence of the President and his administration," Warren wrote.

She vehemently condemned the story that Trump is using his influence to "coerce" the SEC into approving investments that benefit him personally, calling it a "previously unprecedented serious conflict of interest." Warren also warned that Trump's actions could undermine the independence of the SEC to serve personal financial interests.

In response, Trump Media quickly retaliated with a statement via email sent to Reuters, accusing Warren of engaging in "political harassment." The statement said:

"Instead of acting to prevent actual corruption on the stock market and the rampant illegal short-selling of stocks, Senator Warren defends hedge fund moguls and her wealthy donors, while harassing and threatening America-First companies (Prioritize American interests first)."

Is Warren betting uselessly?

Yet despite Warren's drastic demands, Democrats are facing harsh political realities. With Republicans controlling both the House and Senate, the ability to hold public hearings or advance investigations is almost severely limited.

Moreover, Warren's letter to the SEC does not cite any legal basis that could compel the agency to act, but simply requests a response by May 2.

Meanwhile, Trump Media's deeper foray into the crypto space indicates a broad strategy by the Trump family to capitalize on the explosive growth of the digital asset industry. Following the recent agreement with Crypto.com and Yorkville America Digital, the company aims to launch new cryptocurrency-based investment products, aligning with Trump's grand vision of turning the United States into the world's leading cryptocurrency hub.

However, critics warn that the Trump family's increasingly deep financial ties to this sector could raise serious conflicts of interest, especially as Trump continues to call for loosening regulations – changes that could directly benefit his investments.

A Deeper Step into Cryptocurrency by the Trump Family

Since the election victory, the Trump family's cryptocurrency-related projects are said to have brought in hundreds of millions of USD in transaction fees. Although the White House asserts that Trump's assets are safely managed in a trust run by his children – a structure designed to eliminate the risk of conflicts of interest – concerns have not subsided.

A White House spokesperson at that time stated:

"President Trump's assets are managed in a trust fund run by his children. There is no conflict of interest."

All these developments occur against the backdrop of President Trump calling Federal Reserve Chairman (Fed) Jerome Powell a "total failure," while continuously warning about the looming economic challenges.

Therefore, as political tensions and regulations increase, the growing presence of the Trump family in the digital finance sector is expected to continue to be a contentious issue that will be closely monitored in the coming time.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.

Join Telegram:

Twitter (X):

Tiktok:

Youtube:

• ECB warns about Trump's cryptocurrency-friendly policies on the financial stability of Europe
• Dinner with Trump is a promotional stunt for NFTs?

Itadori