Sens. Elizabeth Warren and Richard Blumenthal asked the U.S. Securities and Exchange Commission on Monday to investigate $TRUMP, the memecoin President Donald Trump promoted three days before his inauguration.
In a letter to SEC Chair Paul Atkins, the two Democrats said the token’s collapse should be examined for possible fraud and unjust enrichment. Their argument centers on the gap between what buyers lost and what Trump earned.
Investor losses and Trump’s reported gains sit at the center of the request
Citing New York Times reporting, the senators wrote that nearly 1 million investors lost about $3.81 billion on $TRUMP from its January 2025 debut through the end of June. Over the same period, Trump made $636 million from the token.
$TRUMP traded above $74 at its peak and now changes hands near $1.47, a drop of roughly 98% from the high. The letter says that collapse warrants regulatory scrutiny.
The senators also pointed to a July 27 minority staff report from the Senate Permanent Subcommittee on Investigations. That report gathered statements from buyers, some of whom described the project as abandoned.
SEC had already said memecoins generally fall outside securities rules
The letter arrives after the SEC said in February 2025 that memecoins lack meaningful use and generally do not qualify as securities. That position effectively placed them outside the agency’s usual remit.
Even so, Warren and Blumenthal are pressing the SEC to look into $TRUMP as lawmakers weigh what happens next with the Digital Asset Market Clarity Act.
Clarity Act negotiations are stuck on ethics language tied to Trump
The request comes during a week that could determine whether the bill moves ahead or waits until after the midterms. One of the biggest disputes holding it up is the ethics section covering Trump’s conduct.
Negotiators are still waiting. According to Crypto in America reporter Eleanor Terrett, Sen. Thom Tillis, a Republican, and Sen. Ruben Gallego, a Democrat, sent the White House a tougher version of the provision last week. The draft would bar senior officials from direct involvement in crypto projects, and the administration had not responded days later.
Senate Republican leader Thune wants to begin the chamber’s voting process this week before the August recess. Without an agreement that brings as many as 10 Democrats on board, a floor vote could fail outright.
Warren has pushed for ethics language since July
Warren, the ranking Democrat on the Senate Banking Committee, has opposed the bill throughout the process and is not part of the current negotiations. In July, she pressed Senate leaders to add ethics language after Trump’s financial disclosure showed more than $1.4 billion in crypto income.
The House passed its version of the bill in July 2025 by a 294-134 vote. The Senate Banking Committee advanced the Senate text in May by a 15-9 vote.
If Democrats retake the Senate in November, Warren would likely chair the committee that oversees the SEC.