SEC Sued Over Trump's Memecoin, Senators Claim Rug Pull Scheme

Democratic Senators Elizabeth Warren and Richard Blumenthal have written to the U.S. SEC requesting an investigation into President Donald Trump's memecoin, TRUMP. The senators claim that the coin may be involved in a 'rug pull' scheme, where early investors profit at the expense of late buyers.

The TRUMP memecoin generated $636 million in profits for President Trump and early buyers, but over a million investors lost more than $3.81 billion when the coin crashed by 98%. The senators expressed concern that this may be an 'illegal scam'.

The lawmakers are also pushing for improved language on illicit finance and stablecoin yield provisions in the CLARITY Act, which is currently pending in the Senate. This push ties back to an ethics issue, as the Democrats insist that these concerns must be addressed before they can support the bill.