Senate Democrats Urge SEC to Investigate TRUMP Coin for Fraud
Highlights
- Senators Elizabeth Warren and Richard Blumenthal called on the SEC to investigate the TRUMP Coin.
- They said that the meme coin may constitute an illegal scam.
- The meme coin is down over 90% from its all-time high.
Democratic senators Elizabeth Warren and Richard Blumenthal are urging the Securities and Exchange Commission (SEC) to investigate the TRUMP meme coin for fraud. This comes as the token trades over 90% below its all-time high (ATH). It also comes as the ethics provision in the CLARITY Act remains in focus, with Democrats looking to rein in the president’s involvement in crypto.
Senators Warren and Blumenthal Urge SEC To Probe TRUMP Coin
According to a CNN report, Senators Warren and Blumenthal wrote a letter to SEC Chair Paul Atkins calling for the Commission to investigate the meme coin to detect any illegal fraud or unjust enrichment that the coin may have facilitated. This marks the latest move from Democrats to probe the president’s crypto ventures.
The senators expressed concern that the TRUMP coin “may constitute an illegal scam.” Notably, a Nansen report had revealed that nearly 1 million who bought the Trump meme coin have lost money, with their losses totalling up to $3.81 billion.
Meanwhile, the president had made up to $1.4 billion in crypto income last year, partly from licensing deals involving the meme coin. The meme coin has surged to an all-time high (ATH) of $75 just before Trump took office in January last year but is now down over 90% from its ATH, currently trading at $1.50, according to TradingView data.
Senator Warren has continued to criticize President Trump for his involvement in crypto and the launch of the TRUMP coin. Interestingly, she recently described him as the “most corrupt president” in the nation’s history.
Ethics Battle Over CLARITY Act Lingers
The call for an SEC investigation into the TRUMP coin comes as the CLARITY Act ethics battle lingers. As CoinGape reported, President Trump has yet to sign off on the bipartisan ethics proposal.
The proposal empowers state attorneys general to sue the Department of Justice (DOJ) if it fails to enforce the ethics rule. Democrats such as Senator Warren continue to push against the passage of the CLARITY Act, especially in its current form, arguing that it will supercharge President Trump’s “crypto corruption.”
With a bipartisan deal yet to be in place, it is looking increasingly unlikely that the Senate will pass the crypto bill before its August recess, which begins next week. Data from the top crypto prediction market platform Polymarket shows only a 27% chance that President Trump will sign the bill into law this year.
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