$TRUMP Memecoin Under Fire as Senators Demand SEC Investigation

Democratic senators Elizabeth Warren and Richard Blumenthal have demanded that SEC Chair Paul Atkins investigate the $TRUMP memecoin for potential fraud and unjust enrichment. The token, launched on January 18, 2025, is built on the Solana blockchain with a fixed supply of one billion tokens.

The senators claim that Trump's entities, Fight Fight Fight LLC and CIC Digital LLC, retained 80% of the token's supply at launch, subject to cliff unlocks and daily vesting schedules extending through 2028. This has led to a stark asymmetry in profits: while Trump earned approximately $636 million in royalties from trading volume, retail buyers lost $3.81 billion.

The senators are invoking a legal exception that the SEC wrote into its guidance on memecoins, which preserves non-securities fraud enforcement and requires case-by-case analysis. They argue that $TRUMP warrants individual scrutiny due to its unique economic structure and potential for unjust enrichment.