US Senator Warren Demands SEC Investigate Trump Meme Coin, Questions Whether It Involves "Illegal Scam"
According to CNN reports, U.S. Democratic Senators Warren and Blumenthal have requested the U.S. Securities and Exchange Commission (SEC) to investigate the "TRUMP" Meme coin issued by Trump to confirm whether the project involves fraud or improper profit. In a letter to SEC Chairman Paul Atkins, the two stated that the Trump Meme coin project "may constitute an illegal scam," and requested the regulatory agency to investigate whether the token involves "illegal fraudulent conduct or facilitates improper profit acquisition."
Warren and Blumenthal focused in the letter on whether the project resembles a "Rug Pull" (exit scam) in the crypto industry. They believe that even if it is not a sudden divestiture-style rug pull in the traditional sense, it may still belong to a "soft rug pull" that causes investor losses by gradually withdrawing market support. The SEC should investigate whether the Trump Meme coin poses fraud risks and prevent investors from continuing to suffer losses. As of now, the SEC has not commented on this.