Elizabeth Warren and Richard Blumenthal fired off a letter to SEC Chair Paul Atkins demanding a formal investigation into TRUMP coin. The senators want regulators to examine how the token was promoted, distributed, and traded, citing potential fraud or insider enrichment schemes.
The move comes after the Solana-based token collapsed 98% from its January peak of $73.43. Launched just three days before Trump's second inauguration, nearly a million wallets now sit underwater with combined losses totaling $3.81 billion, according to Nansen data. Right now the coin trades around $1.47, giving it a market cap of roughly $366 million.
The Soft Rug Pull Question
Warren and Blumenthal specifically flagged what they called a "soft rug pull," where insiders gradually drain value without triggering the explosive exit that defines a classic rug pull. Yet their letter stops short of alleging any actual fraud or securities law violations actually occurred. TRM Labs, a blockchain analytics firm, went further, telling CNN their analysis found zero typical rug pull characteristics in the token's mechanics.
The senators pegged Trump's personal windfall at roughly $636 million from the project, a figure Reuters independently estimated at around $616 million for the Trump family overall. Reuters noted their number carried caveats given incomplete wallet ownership data. Meanwhile, 988,905 of the token's 1.48 million purchasing wallets are currently showing losses.
The SEC probe request landed amid broader Senate gridlock over the Digital Asset Market Clarity Act, where lawmakers are deadlocked on cryptocurrency rules for federal employees and their families. Sen. Thom Tillis proposed language giving state attorneys general power to sue the Justice Department if it fails to enforce restrictions, but the White House hadn't publicly weighed in at reporting time. Polymarket traders priced the bill's 2026 passage odds at just 23% as of early August.
This article is informational only and does not constitute financial advice or investment recommendations.
