US Senators Urge SEC to Probe Trump Meme Coin Over Billions in Investor Losses
US Senators Elizabeth Warren and Richard Blumenthal have sent a letter to SEC Chair Paul Atkins requesting an investigation into President Donald Trump’s meme coin, arguing the token may have facilitated fraud or unlawful enrichment at the expense of retail investors.
The lawmakers cited reports indicating that nearly a million investors collectively lost over $3.8 billion on the token between its launch in January 2025, just days before Trump’s inauguration, and the end of June 2026. During the same period, the president and his family reportedly earned around $636 million through trading fees and other revenue streams connected to the token.
Warren and Blumenthal claimed the asymmetry between investor losses and insider gains warrants a formal SEC probe into the project’s structure and marketing. They pointed to allegations that some traders profited before the broader public could react, raising concerns about possible insider trading. The senators argued such actions, combined with the token’s 98% price decline from its all-time high, may resemble a “soft rug pull.”
The letter references previous SEC enforcement actions against similar crypto schemes and recent warnings from state regulators, such as New York’s, about pump-and-dump and rug pulls in the meme coin niche.
Official Trump soared to over $70 within hours of launch but has since fallen to under $1.50 as of press time. It has dropped out of the top 100 altcoins by market capitalization, a year and a half after briefly becoming a top 20 asset and the second-largest meme coin. The team behind the token has been linked to numerous sales as the price declined.