Elizabeth Warren and Richard Blumenthal want the SEC to investigate $TRUMP, the memecoin President Donald Trump pitched days before taking office. In a letter to SEC Chair Paul Atkins on Monday, the two senators argued the token's spectacular collapse shows signs of fraud and unjust enrichment.
The math is stark. Nearly a million investors dumped roughly $3.81 billion into $TRUMP from its January debut through June 2025. Trump himself walked away with $636 million. The token peaked above $74 and now trades around $1.47, erasing 98% of its value. Warren and Blumenthal cited New York Times reporting and a July Senate Permanent Subcommittee on Investigations report documenting buyers who said the project was basically abandoned.
One problem stands in the way: the SEC already decided in February 2025 that memecoins lack meaningful use and fall outside its jurisdiction. That call essentially left $TRUMP unregulated, giving the agency reason to dismiss the letter outright.
Clarity Act hangs on ethics fight
The letter lands as Congress debates whether the Digital Asset Market Clarity Act moves this week or waits until after midterms. The bill's biggest roadblock is the ethics section covering Trump's crypto dealings. Senators Thom Tillis, a Republican, and Ruben Gallego, a Democrat, sent the White House a stricter version last week that would bar senior officials from direct involvement in crypto projects. Days passed. No response.
Majority Leader Thune wants a floor vote before the August recess, but he needs at least 10 Democrats to cross over. Without an ethics deal, the vote fails. Warren, who oversees banking in the Senate minority, has fought the bill throughout and demanded ethics guardrails after Trump disclosed over $1.4 billion in crypto income. The House passed its version 294-134 in July.
This article is for informational purposes only and does not constitute investment advice or financial guidance of any kind.
