Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-CT) on Monday asked the SEC to investigate President Trump’s TRUMP (CRYPTO: TRUMP) meme coin, calling it a potential “illegal scam.”
What The Senators Are Actually Alleging?
Warren and Blumenthal sent the letter directly to SEC Chair Paul Atkins, arguing the meme coin may have facilitated illegal fraud or unjust enrichment, CNN reported.
They raised the possibility of a “soft rug pull,” a scheme where developers gradually withdraw price support rather than abandoning the project all at once, leaving retail buyers absorbing the losses over time.
The $TRUMP coin peaked at roughly $9 billion on January 19, 2025, the day before Trump’s inauguration, with 80% of supply held by Trump Organization affiliates.
