US Senators Push SEC to Investigate Trump Memecoin After $3.8B Losses

Senators Elizabeth Warren (D‑MA) and Richard Blumenthal (D‑CT) sent a formal letter to SEC Chair Paul Atkins requesting an investigation into the $TRUMP token, a Solana‑based memecoin linked to former President Donald Trump. The senators say the token’s price collapsed about 98% from its peak, leaving nearly one million retail investors with combined losses estimated at $3.8 billion, while Trump‑affiliated entities reportedly earned $636 million.

The lawmakers allege the token may have been used in a pump‑and‑dump scheme and could constitute an illegal scam or unjust enrichment under securities law. They argue the token’s association with a political figure and the flow of fees to Trump‑linked parties raise questions under the Howey test. The request comes as Congress debates broader cryptocurrency legislation and the SEC under its new chair considers how to regulate such assets.