Warren and Blumenthal ask SEC to probe Trump memecoin

Two U.S. senators have formally requested a federal investigation into a cryptocurrency launched by President Donald Trump, citing billions in investor losses and hundreds of millions in presidential profits. Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) sent a letter to Securities and Exchange Commission Chairman Paul Atkins on August 4, urging the agency to probe the TRUMP memecoin for potential fraud and violations of securities laws.

The senators pointed to reports that the token, launched just days before Trump's second inauguration in January 2025, has resulted in an estimated $3.8 billion in losses for nearly one million investors. They noted that the president's recent financial disclosure indicated he made approximately $636 million from the venture. The coin's value has plummeted roughly 97 percent from its all-time high, declining from approximately $46 to around $1.47.

In their letter, the lawmakers argued this stark asymmetry raises serious questions about potentially fraudulent enrichment schemes that threaten market integrity and the financial well-being of American investors. They expressed concern the venture could constitute a "rug pull,"...