Trump’s $TRUMP Coin Faces SEC Probe Calls While Truth API Fuels Ethics Debate

• Trump memecoin faces an SEC investigation call as Truth API launches, fueling fresh debate over Truth Social and Donald Trump’s business ventures
• Senators Warren and Blumenthal claim investors lost $3.8 billion, while Trump-affiliated entities generated an estimated $636 million from the memecoin
• Critics say Truth API raises ethics and market fairness concerns, while Trump Media says it simply provides faster access to publicly available posts

A new controversy surrounding US President Donald Trump is now taking the centre stage. Trump is now facing fresh allegations from Senator Warren and Richard Blumenthal. Both of them have urged the US SEC to investigate the Trump memecoin. Senator Warren and Blumenthal are arguing how the Trump memecoin has led to significant investor losses, with traders suffering losses worth $3.8B. Moreover, the project has allegedly ended up benefiting Trump and affiliated entities more than its investors, helping generate an estimated $636M from the venture.

This development has arrived at a time when Trump has recently started a new venture called the Truth API. Touted as a premium data service, Truth API will help Wall Street firms avail milliseconds-earlier access to Trump’s Truth Social posts, fueling fresh debates over ethics, market fairness, and potential conflict of interest.

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Warren and Blumenthal Urge The US SEC To Investigate Trump Memecoin

Senator Elizabeth Warren, alongside Richard Blumenthal, has recently written a letter to the US SEC. The letter urges the agency to examine whether the Trump memecoin violated federal securities laws and harmed investors. The lawmakers argued how the coin ended up benefiting Trump and affiliated entities the most, helping generate an estimated $636M from the venture. At the same time, the coin has posted losses for investors, with traders losing billions to the Trump memecoin mania.

Launched at $0.18 in 2025, the memecoin surged to hit $75 two days after its launch. The memecoin has since spiraled dramatically and was recently trading around $1.47. This encompasses a nearly 97% decline from its earlier peak, portraying significant losses for investors.

This fresh SEC investigation request has arrived at a time when Trump Media has unveiled yet another lucrative business venture. The US President’s Trump Media has launched Truth API, a subscription-based model priced at $100,000 per month. Reports further add that five Wall Street firms have already subscribed, allowing them to receive market-moving Truth Social posts milliseconds before they become publicly available.

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Why Critics Are Raising Ethics Concern?

After this fresh US SEC investigation request, several legal experts and analysts have argued that Donald Trump is monetizing his presidency. Speaking to Fortune, Gian Luca Clementi, an economics professor at NYU Stern School of Business, added that this development is “insider trading by definition,” fueling the ethics debate further.

Clementi later adds how such efforts are helping Trump “monetize” his presidency.

“He’s going to monetize the role of the office of the president of the United States. The undisputable fact is that somebody is going to earn some more money than before, and that’s the president of the United States.”

Trump Media has, however, rejected such claims, stating that the Truth API service simply allows faster access to publicly available Truth Social posts. It is worth noting how Trump owns nearly 41% of Trump Media & Technology Group, meaning he stands to benefit directly from the subscription revenue generated by the service.

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