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US Senators Urge SEC to Probe Trump Meme Coin Over Billions in Investor Losses

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US Senators Elizabeth Warren and Richard Blumenthal have sent a letter to SEC Chair Paul Atkins asking the agency to investigate President Donald Trump’s meme coin, arguing it may have facilitated fraud or unlawful enrichment at the expense of retail investors.

The lawmakers cited reports showing that nearly a million investors collectively lost over $3.8 billion on the token between its launch in January 2025, just days before Trump’s inauguration, and the end of June 2026.

Within the same timeframe, the POTUS and his family have reportedly earned around $636 million through trading fees and other revenue streams connected to the token.

Warren and Blumenthal claimed that the asymmetry between investor losses and insider gains warrants a formal SEC probe into the project’s structure and marketing.

They pointed to allegations that some traders profited from the meme coin’s launch before the broader public could react, which raised some eyebrows about possible insider trading.

They argued that such actions and the subsequent TRUMP price slump of 98% since its all-time high may resemble a “soft rug pull.”

The letter references previous SEC enforcement actions against similar crypto schemes and recent warnings from certain state regulators, such as New York’s, about pump-and-dump and rug pulls in the meme coin niche.

Official Trump skyrocketed to over $70 within hours after launch, but it has crumbled to under $1.50 as of press time. It has also left the top 100 alts by market cap a year and a half after becoming a top 20 asset and the second-largest meme coin.

Meanwhile, the team behind the token has been linked to countless sales as the price tumbled.

Pranešimas US Senators Urge SEC to Probe Trump Meme Coin Over Billions in Investor Losses appeared first on CryptoPotato.

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