Economist and cryptocurrency critic Peter Schiff has called for a congressional investigation into President Donald Trump.
Schiff claims that there is a possibility of market manipulation following Trump's announcement of a U.S. cryptocurrency strategic reserve.
Schiff accuses Trump of leading a cryptocurrency pump and dump
On Sunday, Trump announced plans to create a U.S. cryptocurrency strategic reserve. He said it would include XRP (XRP), Solana (SOL), and Cardano (ADA). The president later added that Bitcoin (BTC), Ethereum (ETH), and other digital currencies would also be included in the reserve.
This announcement triggered a price surge in these coins, reversing several weeks of market decline. However, this did not last long. The cryptocurrency market experienced a sharp retreat, giving back most of the gains made after the announcement.
Now, Schiff claims that Trump's announcement was not a policy but a "pump and dump" to benefit insiders with prior knowledge, rather than a genuine policy.
"Donald Trump, the first crypto president, has helped orchestrate the biggest crypto rug pull in history," Schiff wrote.
The economist initially suspected the author of the Truth Social post that first broke the news. He is demanding an investigation into those who had prior knowledge of the announcement.
Schiff's call for an investigation includes an audit of cryptocurrency purchases made before the announcement. He argues that authorities should investigate the amounts invested in assets, whether they were cashed out and when, and the profits made from the trades.
Beyond financial gains, Schiff is demanding the full disclosure of emails and text messages of Trump's staff, family, campaign donors, and Truth Social employees. This could expose insider trading.
That's not all. Schiff pointed to a post by President's son Eric Trump to support his claims. Recently, Eric Trump celebrated the timing of the cryptocurrency reserve announcement.
"Love the genius of announcing the strategic reserve on a Sunday when traditional markets are closed and Wall Street is asleep," the post read.
He saw this as a loophole for retail investors. This provided an advantage over traditional finance (TradFi). He warned that the old system must adapt quickly, as the market no longer operates on a strict schedule from Monday to Friday, 9 to 5.
Schiff used this comment as evidence of wrongdoing.
"Is Eric Trump admitting to fraud? There was no consensus on the strategic reserve. His post suggests a pump and dump timed to maximize effect when trading volume is low. Retail investors he pumped were duped into buying the tokens he dumped," he said.
This came after Schiff criticized the inclusion of XRP in the reserve. However, he was not alone.
Many industry leaders have questioned the addition of altcoins to the cryptocurrency strategic reserve. They argue that only BTC should form the core of a government-backed digital asset reserve.
Nevertheless, experts speculate that additional assets may be considered in the future. Leading candidates include Chainlink (LINK), Ondo (ONDO), and Litecoin (LTC).
