Trump Coin faces SEC pressure, Warren calls for full fraud investigation

Senators have called on the SEC to investigate TRUMP coins and demand a thorough investigation of fraud and improper gains

Democratic Senators Elizabeth Warren and Richard Blumenthal have written to the U.S. Securities and Exchange Commission requesting an investigation into TRUMP minocoins. They want regulators to determine whether the token contributes to fraud or illegal financial gains. At the same time, Congress is engaged in an ongoing debate over the ethics provisions of the CLARITY Act and President Donald Trump's cryptocurrency activities.

Senators ask SEC to investigate TRUMP coins

Senators Elizabeth Warren and Richard Blumenthal sent a letter to SEC Chairman Paul Atkins requesting an investigation into TRUMP memin. They asked the committee to review whether the token violated securities laws or promoted illegal economic benefits. The move further expands Democratic action against President Trump's digital assets project.

Two lawmakers pointed out that the token has many problems with its structure, promotion and financial results. They believe regulators should determine whether the project harms buyers or provides insiders with undue benefits. They also urged the SEC to review all transaction records related to the token.

The recent Nansen report has exacerbated these concerns through online market analysis. The report estimates that nearly 1 million TRUMP coin buyers lost a total of approximately US$3.81 billion. At the same time, the token traded at about $1.50, down more than 90% from the previous historical high of about $75.

TRUMP currency performance draws political attention

TRUMP memin peaked shortly before President Trump returned to the White House in January this year. However, as market sentiment weakened, the token subsequently depreciated significantly. The sharp drop has intensified political criticism of the project.

Public disclosures show that President Trump has earned considerable cryptocurrency-related revenue in the past year. Some of the revenue was reported to come from licensing agreements related to TRUMP miniin. As a result, Democratic lawmakers have stepped up their review of the project's economic interests.

Senator Warren has repeatedly criticized President Trump's involvement in the cryptocurrency field. She recently described his actions as evidence of serious ethical issues in public office and digital assets. At the same time, despite Democratic opposition, Republicans continue to support broader cryptocurrency legislation.

Ethics debate on the CLARITY Act continues

The SEC investigation request comes as negotiations on the CLARITY Act have not yet reached an agreement. Lawmakers continue to debate an ethics proposal related to broader crypto market structure legislation. However, President Trump has not yet approved the bipartisan ethics clause.

The proposal allows state attorneys general to challenge the Justice Department through legal action. If the Justice Department fails to implement agreed ethics requirements, state attorneys general can take action. Democrats believe that stricter regulatory mechanisms must be established before legislation can be advanced.

Senator Warren and other Democrats continue to oppose the current version of the CLARITY Act. They believe the bill fails to adequately address the conflicting issues involved in President Trump's cryptocurrency interests. At the same time, bipartisan negotiations are still ongoing and no final agreement has yet been reached.

Congress is currently facing increasingly tight time pressures as the planned August recess begins next week. Without a compromise, it seems unlikely that the Senate will complete consideration of the bill before lawmakers leave Washington. Moreover, Polymarket's forecast market data shows that President Trump has only a 27 percent chance of signing the bill this year.

The continuing disagreement highlights deep divisions in the U.S. over digital asset regulation. Democrats continue to seek to establish stricter ethical safeguards alongside encryption legislation, while negotiations remain actively ongoing. Until members reach a consensus, the TRUMP coin investigation request and the CLARITY Act debate are expected to remain core political issues.