Huo Xing Finance reports that U.S. Democratic Senators Elizabeth Warren and Richard Blumenthal sent a letter to SEC Chairman Paul Atkins on Monday, calling for an investigation into whether Trump-related meme coins violate securities laws. In the letter, the senators cited reports indicating that since the launch of the Trump 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 determine whether fraudulent arrangements or violations of securities laws exist. Warren and Blumenthal stated that although the token has been actively promoted by Trump’s public statements, its price has plummeted dramatically, and the SEC must investigate whether a fraudulent scheme is underway to prevent further extraction of massive value from hundreds of thousands of investors. This letter comes as the White House evaluates a recent compromise on ethical guidelines regarding potential conflicts of interest tied to Trump’s cryptocurrency business activities—a compromise seen as critical to advancing the Clarity Act 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, excluded other family members, and assigned enforcement responsibility to the Department of Justice. The two senators also claimed that Trump has shown “active interest” in encouraging his supporters to trade his meme coin and asserted that Trump has earned $636 million from the token. With the Senate set to enter its August recess on Friday, followed by a shift in focus toward the November elections, whether the Clarity Act can be advanced in the near term still depends on whether both parties can reach consensus on Trump-related cryptocurrency conflicts of interest.
U.S. Senators Request SEC Investigation into Trump-Linked Meme Coin
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Summary
U.S. Senators Elizabeth Warren and Richard Blumenthal have sent a letter to SEC Chair Paul Atkins, requesting an investigation into news surrounding a Trump-linked meme coin. The senators cited $3.81 billion in losses across nearly 1 million wallets since the token’s launch in January 2025. They allege that Trump is involved in a potential “rug pull” and has earned $636 million from the project. This SEC development comes amid White House discussions about ethical concerns regarding Trump’s cryptocurrency business ties, which are affecting the stalled Clarity Act. With lawmakers preparing for the August recess and the November elections approaching, progress on the bill hinges on resolving Trump-related conflicts.
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