Warren and Blumenthal Demand SEC Investigation into Trump's Memecoin

Senator Elizabeth Warren and Richard Blumenthal have sent a letter to SEC Chair Paul Atkins, asking the agency to investigate President Donald Trump's memecoin. The lawmakers claim that nearly one million wallets lost billions of dollars as the token crashed, raising questions about insider profits and investor protection.

The TRUMP memecoin reached a market value of nearly $9 billion shortly after launching before losing more than 97% of its value. According to the senators, around 988,905 investor wallets have lost a combined $3.8 billion, while nearly 66% of all buyers ended up losing money.

The letter also points to President Trump's crypto earnings, which exceeded $1.4 billion during his first year, according to his financial disclosures. The senators argue that companies linked to Trump and close insiders initially controlled around 80% of the token supply, allegedly reducing their holdings over time to put continuous pressure on the token price.