Senators Elizabeth Warren and Richard Blumenthal asked the SEC on Monday to investigate Trump's memecoin, citing nearly $3.8 billion in losses across almost a million investors. The request lands as the Digital Asset Market Clarity Act sits frozen over questions about government officials holding crypto.
The $TRUMP token peaked above $46 but has since cratered to $1.47. Warren and Blumenthal pointed out the president disclosed $636 million in gains from the coin, creating what they called a "stark asymmetry" that warrants regulatory scrutiny. "While all cryptocurrency trading involves risk, such a stark asymmetry raises questions about how the president made his cryptocurrency fortune, including through potentially fraudulent enrichment schemes," they wrote in the letter to SEC Chair Paul Atkins.
The memecoin saw temporary price bumps when its backers announced dinners at Mar-a-Lago featuring Trump as keynote speaker, but neither spike held. The SEC has largely ducked memecoin oversight, claiming these tokens fall outside its jurisdiction. The lawmakers argue the agency has a duty to investigate regardless, given the scale of retail losses.
The letter carries more political weight than regulatory certainty. Negotiators working on the Clarity Act are waiting for White House feedback on the bill's ethical constraints for officials' digital asset holdings. The legislation has been languishing for weeks amid this standoff, leaving the memecoin question unresolved at the legislative level.
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