US Senators Demand SEC Probe Into Trump Meme Coin Losses

US Senators Elizabeth Warren and Richard Blumenthal sent a letter to SEC Chair Paul Atkins this week, asking the agency to investigate the Trump meme coin. The lawmakers pointed to reports showing that nearly a million investors lost over $3.8 billion on the token between its launch in January 2025 and June 2026. During that same period, the project generated around $636 million in revenue and trading fees for insiders.

The letter argues that the huge gap between retail investor losses and insider gains demands a formal investigation into the project. Senators highlighted concerns about possible insider trading, noting that certain traders profited immediately after the launch before the public could buy in. They also compared the dramatic ninety eight percent price drop to a soft rug pull scheme.

The token initially skyrocketed past seventy dollars shortly after its launch, but the price has since crashed below one dollar and fifty cents. It has completely dropped out of the top one hundred cryptocurrencies by market cap after once holding a spot in the top twenty. Traders should watch for any official response from the SEC as regulatory scrutiny on celebrity tokens continues to grow.