Trump memecoin controversy in US

In late July 2026, Donald Trump’s team moved roughly $16.9 million worth of the Official Trump (TRUMP) memecoin to three custody wallets, shifting about 9.6 % of the token’s total supply. The transfers occurred amid Senate negotiations on the Digital Asset Market CLARITY Act, a bill aimed at setting ethics rules for public officials’ crypto holdings. Lawmakers argued the legislation did not go far enough to prevent Trump and his family from profiting from the token’s $1.4 billion 2025 windfall.

By early August 2026, Senators Elizabeth Warren and Richard Blumenthal sent a formal letter to SEC Chair Paul Atkins requesting an investigation into the TRUMP token. They cited a near‑98 % price collapse that left roughly one million retail investors with $3.8 billion in losses, while Trump‑affiliated entities reportedly earned $636 million. The senators suggested the token may have been used in a pump‑and‑dump scheme and could violate securities law, adding pressure on regulators as broader cryptocurrency legislation continues to be debated.