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 might have facilitated fraud or illegal enrichment on the expense of retail buyers.
The lawmakers cited stories displaying that almost 1,000,000 buyers 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.
Throughout the similar timeframe, the POTUS and his household have reportedly earned round $636 million by way of buying and selling charges and different income streams related to the token.
Warren and Blumenthal claimed that the asymmetry between investor losses and insider good points warrants a proper SEC probe into the venture’s construction and advertising.
They pointed to allegations that some merchants profited from the meme coin’s launch earlier than the broader public may react, which raised some eyebrows about potential insider buying and selling.
They argued that such actions and the following TRUMP value stoop of 98% since its all-time excessive might resemble a “tender rug pull.”
The letter references earlier SEC enforcement actions towards related crypto schemes and up to date warnings from sure state regulators, resembling 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 below $1.50 as of press time. It has additionally left the highest 100 alts by market cap a yr and a half after turning into a prime 20 asset and the second-largest meme coin.
In the meantime, the crew behind the token has been linked to numerous gross sales as the value tumbled.
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