US Senators Elizabeth Warren and Richard Blumenthal have despatched a letter to SEC Chair Paul Atkins asking the company to analyze President Donald Trump’s meme coin, arguing it could have facilitated fraud or illegal enrichment on the expense of retail traders.
The lawmakers cited experiences exhibiting that just about 1,000,000 traders collectively misplaced over $3.8 billion on the token between its launch in January 2025, simply days earlier than Trump’s inauguration, and the top of June 2026.
Inside the similar timeframe, the POTUS and his household have reportedly earned round $636 million via buying and selling charges and different income streams linked to the token.
Warren and Blumenthal claimed that the asymmetry between investor losses and insider good points warrants a proper SEC probe into the challenge’s construction and advertising and marketing.
They pointed to allegations that some merchants profited from the meme coin’s launch earlier than the broader public might react, which raised some eyebrows about attainable insider buying and selling.
They argued that such actions and the next TRUMP worth droop of 98% since its all-time excessive could resemble a “mushy rug pull.”
The letter references earlier SEC enforcement actions in opposition to related crypto schemes and up to date warnings from sure state regulators, comparable to New York’s, about pump-and-dump and rug pulls within the meme coin area of interest.
Official Trump skyrocketed to over $70 inside hours after launch, nevertheless it has crumbled to underneath $1.50 as of press time. It has additionally left the highest 100 alts by market cap a yr and a half after changing into a prime 20 asset and the second-largest meme coin.
In the meantime, the workforce behind the token has been linked to numerous gross sales as the value tumbled.
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