Warren Calls for SEC Probe Into Trump Memecoin as Crypto Bill Stalls

A political standoff over crypto ethics rules is now colliding with new pressure on regulators to investigate the president’s own digital token.

Warren and Blumenthal Demand SEC Action

Senators Elizabeth Warren and Richard Blumenthal have formally asked SEC Chairman Paul Atkins to investigate the $TRUMP memecoin. Their letter points to an estimated $3.8 billion in losses suffered by nearly a million investors, contrasted with Trump’s own financial disclosure showing he personally earned $636 million from the token. The senators argue this gap raises serious questions about how those profits were made, including concerns about possible fraudulent enrichment and risks to market stability.

$TRUMP once traded above $46 but has since fallen to around $1.47. Brief price jumps occurred around promotional dinner events, including one at Mar-a-Lago, but gains didn’t last.

SEC’s Current Stance on Memecoins

Interestingly, the SEC has already stated that memecoins generally fall outside securities law, citing their limited real-world use or function. That earlier position may complicate any formal investigation request.

Clarity Act Stuck on Ethics Dispute

This request lands as the Digital Asset Market Clarity Act remains stalled, specifically over a provision that would restrict senior government officials from involvement in crypto ventures. Trump agreed to limited restrictions, but Democrats say the language is too weak. Senators Thom Tillis and Ruben Gallego drafted a stronger version and sent it to the White House last week, which has yet to respond.

Without a compromise, Senate Majority Leader John Thune’s push to begin voting this week could fail, as up to 10 Democratic votes remain uncertain.

Warren’s Political Position

Warren, the top Democrat on the Senate Banking Committee, has remained critical of the bill throughout negotiations. If Democrats regain the Senate majority after the midterms, she could take control of the committee overseeing SEC operations and future crypto legislation.