Warren and Blumenthal Slam Trump's Memecoin as 'Illegal Scam'

Senate Democrats Elizabeth Warren and Richard Blumenthal have called on the Securities and Exchange Commission to investigate President Donald Trump's memecoin, which they believe may be an 'illegal scam'.

In a letter shared with CNN, the lawmakers urged the SEC to determine whether the cryptocurrency constitutes an illegal scam or a 'soft rug pull,' where insiders gradually profit while retail investors absorb heavy losses.

The White House referred questions to the Trump Organization, which declined to comment. President Trump has previously defended his cryptocurrency earnings, stating they comply with the law and that his son Eric oversees his personal financial interests while he serves as president.