Senators Warren and Blumenthal cite $3.81B in $TRUMP losses; ethics provision stalls Clarity Act as Senate faces August recess deadline. NYT Alpha Score 52.
Alpha Score of 42 reflects weak overall profile with weak momentum, poor value, moderate quality, weak sentiment.
Two Senate Democrats want the Securities and Exchange Commission to investigate $TRUMP, the memecoin President Donald Trump promoted days before his inauguration. In a letter Monday to SEC Chair Paul Atkins, Senators Elizabeth Warren and Richard Blumenthal said the token's collapse raises questions about fraud and unjust enrichment.
The senators built their case on the gap between what buyers lost and what the president earned. Nearly a million investors lost about $3.81 billion on $TRUMP from its January 2025 debut through the end of June, they wrote, citing New York Times reporting. Trump made $636 million from the token. $TRUMP traded above $74 at its peak and now changes hands near $1.47, down roughly 98%. The letter also points to a July 27 Senate Permanent Subcommittee on Investigations minority staff report collecting accounts from buyers who described the project as abandoned.
The SEC said in February 2025 that memecoins lack meaningful use and generally do not qualify as securities, effectively removing them from its remit. That position could complicate any investigation.
The letter arrives in the week that decides whether the Digital Asset Market Clarity Act moves or waits until after the midterms. One of the major fights holding the bill up is the ethics section covering Trump's conduct.
Negotiators are still waiting. Senators Thom Tillis, a Republican, and Ruben Gallego, a Democrat, sent the White House a tougher version of the provision barring senior officials from direct involvement in crypto projects last week. The administration had not responded days later, according to reporting by Crypto in America's Eleanor Terrett. Senate Majority Leader John Thune wants to start the voting process this week, before the August recess. Without a deal that brings as many as 10 Democrats along, a floor vote risks failing outright.
Warren, the ranking Democrat on the Senate Banking Committee, has opposed the bill throughout and sits outside the negotiations. She pressed Senate leaders in July to add ethics language after Trump's financial disclosure showed more than $1.4 billion in crypto income. The House passed its version 294-134 in July 2025, and the Banking Committee advanced the Senate text 15-9 in May. If Democrats retake the Senate in November, Warren would likely chair the committee that oversees the SEC.
AlphaScala's proprietary score for the New York Times, which the senators cited, sits at 52 out of 100, a Mixed rating.
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