Elizabeth Warren demands SEC investigate if Trump’s memecoin is an ‘illegal scam’
- On Monday, Senate Democrats Elizabeth Warren and Richard Blumenthal demanded that SEC Chair Paul Atkins investigate President Trump's memecoin, citing concerns it may facilitate "illegal fraud or unjust enrichment" for the Trump Organization.
- The Trump coin's value plummeted from about $9 billion in January 2025 before collapsing. Nearly 1 million investors lost $3.8 billion through June, with the asset now worth less than $400 million, according to Nansen.
- Warren and Blumenthal suggested the scheme could be a "soft rug pull," where support is withdrawn gradually. With 80% of supply held by insiders, they argue the project requires scrutiny to protect retail buyers.
- Trump defended his crypto profits in a CNBC interview last month, stating he followed the law and authorized his son Eric to manage his finances. The White House referred further questions to the Trump Organization.
- The SEC evaluates memecoins case-by-case under guidance clarifying they are not inherently securities. While Ari Redbord of TRM Labs previously noted the project lacked traditional "rug pull" hallmarks, lawmakers argue the SEC must enforce laws regardless of political connections.
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Elizabeth Warren Calls Trump's Memecoin An 'Illegal Scam'
Senate Democrats Elizabeth Warren and Richard Blumenthal have urged the Securities and Exchange Commission to investigate President Donald Trump's memecoin, arguing it may have facilitated illegal fraud or unjust enrichment, according to a letter first shared with CNN.
Elizabeth Warren demands SEC investigate if Trump’s memecoin is an ‘illegal scam’
Days before his inauguration in 2025, president-elect Donald Trump did something unusual: He launched a memecoin.That memecoin briefly exploded in value – and then crashed in an epic selloff that left nearly a million investors facing losses.Now, a pair of Senate Democrats are demanding Trump’s top Wall Street cop investigate the mess.Democratic Sens. Elizabeth Warren and Richard Blumenthal are calling for the Securities and Exchange Commission to investigate Trump’s memecoin “to detect any illegal fraud or unjust enrichment that the coin may have facilitated.”
Senator Warren Calls Trump's Memecoin an 'Illegal Scam'
The post Senator Warren Calls Trump’s Memecoin an ‘Illegal Scam,’ Urges SEC Investigation appeared first on Coinpedia Fintech News President Donald Trump’s official TRUMP memecoin is under pressure after two senior Democratic senators asked the U.S. Securities and Exchange Commission (SEC) to investigate whether the token harmed investors. The lawmakers claim nearly one million wallets lost billions of dollars as the token crashed, raising new …
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