Warren and Blumenthal Call for SEC Probe into TRUMP Meme Coin

Senators Elizabeth Warren and Richard Blumenthal have asked the SEC to investigate President Trump's TRUMP (CRYPTO: TRUMP) meme coin, labeling it a potential 'illegal scam.'

The letter sent directly to SEC Chair Paul Atkins alleges that the meme coin may have facilitated fraud or unjust enrichment, with the possibility of a 'soft rug pull,' where developers gradually withdraw price support rather than abandoning the project all at once.

The TRUMP coin peaked at around $9 billion on January 19, 2025, but now trades below $400 million, a 97% decline from its peak. Nearly 1 million people lost money on the coin, racking up $3.8 billion in total losses by the end of June.

Ari Redbord, global head of policy at TRM Labs, said that while blockchain analysis did not show hallmarks of a traditional rug pull, the project's structure still raised concerns. 'Eighty percent of supply sitting with a small group of investors and close to a million retail buyers absorbing the losses is going to look worse with time, not better,' he told CNN.