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Aug 2, 2026

U.S. senators ask SEC to investigate TRUMP memecoin for possible fraud

Democratic Senators Elizabeth Warren and Richard Blumenthal have formally requested the Securities and Exchange Commission investigate President Donald Trump's memecoin, which he launched days before his 2025 inauguration, alleging it may constitute fraud or an illegal 'rug pull' scheme. The inquiry comes amid polling showing 55% of voters disapprove of Trump's billion-dollar cryptocurrency earnings.

Aug 2, 2026·6 sources
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Top claims

  • ▪The Clarity Act contains ethics provisions prohibiting the president, vice president, other covered officials, and their spouses from issuing or sponsoring digital assets for profit while in office.
  • ▪The $TRUMP memecoin peaked at a market capitalization of approximately $9 billion on January 19, 2025, and subsequently fell below $400 million by August 2026.
  • ▪Senator Elizabeth Warren criticized the draft Clarity Act, stating it does nothing to prevent Donald Trump from earning future fortunes from cryptocurrency ventures.

Topics

Securities vs. commoditiesCrypto regulationMeme coinsCrypto enforcement actions

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