Senators Elizabeth Warren and Richard Blumenthal have asked SEC chair Paul Atkins to investigate the TRUMP memecoin and its operations.

Request to the regulator

The senators requested a review to determine whether the project facilitated fraud or inappropriate enrichment of participants and promoters.

Allegations and figures

The letter highlights several specific facts that, according to lawmakers, warrant regulatory scrutiny and potential enforcement action.

• Since the token’s launch, nearly 1 million investors reportedly lost more than $3.81 billion.
• Donald Trump’s proceeds from the project are estimated at about $636 million.
• The president publicly promoted the token soon after its launch and could have received fees from trading irrespective of price movements.
• TRUMP’s market value fell by almost 98% from its all-time high, while some early traders realized multimillion-dollar gains.

Regulatory implications

Warren and Blumenthal argue these circumstances may indicate a rug pull or pump-and-dump scheme and urged the SEC to investigate accordingly.

The senators asked the regulator to apply existing securities laws without regard to the political status of those involved and to report its findings.