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Warren and Blumenthal urge SEC to investigate Trump memecoin
Lawmakers asked the SEC chairman to probe an estimated $3.8 billion in losses tied to the $TRUMP token, citing Warren's concern about potential enrichment and investor harm.
Democratic U.S. Senators Elizabeth Warren and Richard Blumenthal have asked the Securities and Exchange Commission to investigate President Donald Trump’s $TRUMP memecoin as the crypto Clarity Act remains stalled in Congress, according to CoinDesk.
In a letter to SEC chairman Paul Atkins dated Monday, the senators argued that the agency has a duty to review the scale of alleged harm, pointing to an estimate of $3.8 billion in losses affecting almost a million investors. They also referenced Trump’s recent financial disclosure, which they said showed he made $636 million from the token.
The senators said the imbalance between potential gains for the president and losses for token holders raises questions about how his cryptocurrency fortune was made, including concerns about potential fraudulent enrichment schemes and broader market integrity implications, per CoinDesk.
CoinDesk reported that $TRUMP traded above $46 at its height before declining to about $1.47, with brief price spikes around promotional dinner announcements tied to the project, including one at Trump’s Mar-a-Lago, where Trump was described as the keynote speaker. The outlet also noted the SEC has previously said memecoins are generally outside its oversight scope, and the lawmakers’ letter lands amid ongoing negotiations over a draft section that would bar senior government officials from direct involvement in crypto projects.