Odaily Planet Daily reports that U.S. Democratic Senators Elizabeth Warren and Richard Blumenthal sent a letter to SEC Chair Paul Atkins on Monday, requesting an investigation into whether Trump-related meme coins violate securities laws.
In their letter, the two senators cited reports stating that since the launch of Trump’s meme coin in January 2025, nearly one million cryptocurrency wallets have incurred losses, totaling approximately $3.81 billion. They accused Trump of potentially participating in a “rug pull” and requested the SEC to determine whether fraudulent arrangements or violations of securities laws were involved.
Warren and Blumenthal stated that despite the token being driven by public statements from Trump himself, its price has plummeted significantly, and the SEC has a duty to investigate whether a fraudulent scheme exists and to prevent further extraction of substantial value from hundreds of thousands of investors.
At the time this letter is issued, the White House is evaluating a revised ethical compromise regarding potential conflicts of interest related to Trump’s cryptocurrency business interests. This compromise is seen as critical to advancing the Clarity Act, a bill on cryptocurrency market structure. A previous draft, endorsed by Trump, faced opposition from Democrats because it only restricted public officials and their spouses from issuing or sponsoring digital assets, failed to cover other family members, and assigned enforcement responsibility to the Department of Justice.
The two senators also stated that Trump has shown "positive interest" in encouraging his supporters to trade his meme coin and claimed that Trump earned $636 million from the meme coin. With the Senate set to enter its August recess on Friday, after which focus will shift to the November election, whether the Clarity Act can make progress in the short term depends on whether both parties can reach consensus on Trump’s related cryptocurrency conflicts of interest.