$3.8 Billion Losses: Warren Requests SEC Investigation into Trump's Memecoin
US Senator Elizabeth Warren and fellow Democrat Richard Blumenthal have requested that SEC Chairman Paul Atkins investigate President Donald Trump's memecoin, $TRUMP. The lawmakers claim the token has led to significant losses for nearly a million investors, with an estimated $3.8 billion in damages.
The $TRUMP coin was once worth over $46 but is now trading at $1.47. Warren and Blumenthal argue that Trump's involvement raises questions about market integrity and stability, as well as potential fraudulent enrichment schemes.
This request comes as negotiators finalize the Digital Asset Market Clarity Act, which aims to regulate government officials' involvement in crypto projects. The bill would ban senior government officials from directly participating in crypto ventures, but Trump has agreed to be subject to a limit that many consider ineffective.
The SEC has previously ruled memecoins as outside its sphere of influence, citing their limited or no use and functionality under the law.