Democratic Senator Elizabeth Warren slammed the US Securities and Exchange Commission on Friday, warning that the agency, under Chairman Paul Atkins, cannot be trusted to fairly supervise Trump Media & Technology Group’s new crypto-backed exchange-traded funds.
Elizabeth, who leads the US Senate’s banking committee, sent a letter demanding the SEC stay free from President Donald Trump’s influence as his company moves to launch many investment products that will need the agency’s approval.
In the letter, Elizabeth ordered Atkins to save every communication about the deal between Trump Media and the unnamed crypto company expected to handle trading of the new ETFs. She said:
“All SEC decisions and actions involving Trump Media & Technology Group and President Donald Trump’s financial interests should be carefully managed to ensure that they are free from undue political interference and influence from the President and his administration.”
Elizabeth Warren rips Trump Media’s crypto plans as an “extraordinary conflict of interest”
Elizabeth made it clear that Trump Media’s push into crypto investment products was a major red flag. She told Atkins that the President was asking an agency he oversees “to approve investments he controls,” calling the situation an “extraordinary conflict of interest.”
Elizabeth also accused Trump of trying to boss around independent agencies like the SEC, threatening their independence just to boost his personal business.
Trump Media reportedly responded fast through an emailed statement to Reuters, attacking Elizabeth for what they called political harassment. The statement read:
“Rather than acting to stop actual corruption on the stock market and the rampant, illegal naked short selling of stocks, Senator Warren protects hedge fund bosses and her rich donors while harassing and intimidating America-First companies.”
Even though Elizabeth made strong demands, Democrats are stuck. With Republicans controlling both the US House and Senate, Democrats have almost no real way to force public hearings or investigations. Her letter to Atkins didn’t mention any legal power that would make the SEC obey her demands. She asked for a response by May 2.
Trump Media’s latest move to crypto is part of a much bigger push by the Trump family to get deeper into the crypto world. On April 22, Trump Media announced a binding agreement with Crypto.com and Yorkville America Digital.
Together, they plan to sell new retail investment products built around crypto, another step in Trump’s plan to make crypto a big part of the American economy.
Since Trump won the White House again, government ethics watchdogs have been warning that his family could make huge profits off his presidential powers.
The Trump family’s crypto projects have already pulled in hundreds of millions of dollars in fees since Trump’s election. Critics say the family’s financial stake gives Trump strong reasons to loosen crypto rules while in office.
Three weeks ago, Democrats sent another letter, this time asking the SEC to preserve records tied to Trump’s new crypto company, World Liberty Financial.
They said they wanted to see whether “the Trump family’s financial interest in World Liberty Financial may be influencing” SEC decisions. A White House spokesperson reportedly answered by saying:
“President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
Earlier this year, in January, the Trump Organization said the President would not take part in running his businesses. They said daily operations and decision-making would be handled by his children to avoid any direct conflicts.
Trump Media, the company behind all this new crypto action, is now sitting on a fortune. The Trump family owns about 60% of the company’s stock, giving it a valuation of around $3 billion.
While most of the broader market struggled badly because of Trump’s new round of aggressive tariffs, Trump Media shares jumped 40% after April 2 when Trump announced his tariff plan.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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