SEC Urged to Probe Trump Meme Coin Over Billions in Investor Losses
US Senators Elizabeth Warren and Richard Blumenthal have sent a letter to SEC Chair Paul Atkins, urging the agency to investigate President Donald Trump's meme coin. The lawmakers argue that the token may have facilitated fraud or unlawful enrichment at the expense of retail investors.
The senators point out that nearly a million investors collectively lost over $3.8 billion on the token between its launch in January 2025 and the end of June 2026. Within the same timeframe, Trump and his family reportedly earned around $636 million through trading fees and other revenue streams connected to the token.
Warren and Blumenthal claim that the asymmetry between investor losses and insider gains warrants a formal SEC probe into the project's structure and marketing. They also reference allegations of possible insider trading, where some traders profited from the meme coin's launch before the broader public could react.
The lawmakers argue that such actions may resemble a 'soft rug pull,' citing previous SEC enforcement actions against similar crypto schemes and recent warnings from state regulators about pump-and-dump and rug pulls in the meme coin niche. The team behind the token has been linked to countless sales as its price tumbled.