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

US Senators Elizabeth Warren and Richard Blumenthal have despatched a letter to SEC Chair Paul Atkins asking the company to examine 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 almost 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 tip of June 2026.

Within the identical 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 features 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 might react, which raised some eyebrows about doable insider buying and selling.

They argued that such actions and the next TRUMP worth hunch of 98% since its all-time high might 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, equivalent to New York’s, about pump-and-dump and rug pulls in 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 becoming a prime 20 asset and the second-largest meme coin.

Meanwhile, the group behind the token has been linked to numerous gross sales as the value tumbled.

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