Democratic Sens. Elizabeth Warren and Richard Blumenthal are calling on the Securities and Exchange Commission to investigate President Donald Trump’s memecoin, alleging that it may have facilitated fraud or improper enrichment, CNN reported.

In a letter sent Monday to SEC Chairman Paul Atkins, the senators wrote that they were concerned the cryptocurrency scheme “may constitute an illegal scam” and urged the agency to examine whether investors were unlawfully harmed.

The Trump coin, 80% of which was held by Trump Organization affiliates, reached a peak valuation of roughly $9 billion in January 2025. It is now valued at less than $400 million, representing a decline of approximately 97% from its peak, according to CoinMarketCap data cited by CNN.

Nearly one million people lost a combined $3.8 billion on the token through the end of June, according to research cited in the report. Trump, meanwhile, reported nearly $636 million in royalty and licensing fees connected to the coin’s “Celebration Coins” during the previous year.

The senators also raised concerns that the token could have operated as a “rug pull,” though blockchain intelligence firm TRM Labs said the project did not display the typical hallmarks of such a scheme. The firm said the coin’s price support eroded gradually rather than collapsing at once, while a relatively small group of early buyers and insiders profited and many later investors suffered losses.

The SEC has previously stated that memecoins generally are not securities, although it also said that products cannot avoid securities laws merely by labeling themselves memecoins. Warren and Blumenthal argued that the Trump token should be reviewed on a case-by-case basis.

(YWN World Headquarters – NYC)