$TRUMP Token Faces SEC Investigation Amid Claims of Illegal Scam
Democratic Senators Elizabeth Warren and Richard Blumenthal are calling on the Securities and Exchange Commission (SEC) to investigate President Donald Trump's memecoin, $TRUMP. The senators warn that the cryptocurrency may have been used to enrich insiders while hundreds of thousands of buyers suffered steep losses.
The $TRUMP token was launched shortly before Trump's return to the White House in January 2025 and briefly reached a market value of roughly $9 billion. However, it has since fallen sharply, with its current price trading at around $1.48 and a market capitalization of approximately $368 million.
The senators point out that nearly 1 million traders lost a combined $3.8 billion on the token through the end of June, according to research by blockchain analytics company Nansen. Entities associated with the Trump Organization initially controlled 80% of the token's total supply.
In their letter to SEC Chair Paul Atkins, Warren and Blumenthal argued that the agency must be willing to enforce the law even when potential wrongdoers include those with powerful political connections. They asked the regulator to determine whether the token amounted to a 'rug pull' or a 'soft rug pull,' where insiders extract value over time rather than abandoning the project.