Democratic Senators Elizabeth Warren and Richard Blumenthal have called on the U.S. Securities and Exchange Commission (SEC) to investigate President Donald Trump’s memecoin.
The lawmakers cited data showing that nearly 1 million wallets have lost money since the launch of the TRUMP token in January 2025—total losses are estimated at approximately $3.81 billion. The senators accused Trump of being involved in a “rug pull” scheme and urged the regulator to determine whether securities laws were violated.
The situation is becoming more acute due to timing: on Friday, the senators will go on their August recess. If Congress does not pass the Clarity Act this year, the SEC will continue to develop its own regulatory framework for digital assets—previously, the regulator has already stated that memecoins are not securities.