U.S. Senators Elizabeth Warren and Richard Blumenthal have urged the SEC to investigate the $TRUMP memecoin on the Solana blockchain following a 97 to 98% crash from its all-time high. Nearly one million investors suffered collective losses of approximately $3.8 billion, while former president Donald Trump allegedly earned around $636 million according to financial disclosures. The senators characterized this pattern as a potential pump-and-dump scheme and possible illegal scam. The case raises critical questions about the token’s classification under the Howey test, specifically whether it functions as an unregistered security rather than a simple memecoin. SEC Chair Paul Atkins’s response will likely define the boundaries of the current administration’s crypto-friendly approach.
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