$TRUMP Memecoin Losses Draw Regulatory Scrutiny

U.S. senators Elizabeth Warren and Richard Blumenthal have called on the SEC to investigate the launch of President Donald Trump's memecoin, $TRUMP.

The senators claim that nearly 1 million investors lost over $3.8 billion in value after the token's debut on January 17, 2025, while Trump allegedly profited $636 million from its promotion.

Warren and Blumenthal argue that the memecoin's sharp decline in value points to a possible 'rug pull' scheme and flag potential conflicts of interest for the president, who has promoted the token on social media platforms.

The senators' letter ties the controversy to ongoing debates over crypto regulation in Congress and highlights concerns over investor protection.