Democrats have launched a strategic offensive on May 6, 2025, targeting former President Donald Trump’s cryptocurrency ventures through legislative and investigative means. This multi-pronged approach includes the introduction of two bills and a subcommittee inquiry, all aimed at curtailing Trump’s ability to benefit from his crypto initiatives.
Legislative Maneuvers Unveiled
In a bold move, Democratic Senator Chris Murphy introduced the Modern Emoluments and Malfeasance Enforcement Act, or MEME Act—a legislative salvo designed to prevent federal officials from leveraging their positions to profit from cryptocurrencies, particularly memecoins. The bill outlines prohibitions for the president, vice president, members of Congress, and senior executive branch officials as well as their immediate family members from issuing, sponsoring, or promoting any digital assets. Violators of this proposed legislation could face civil penalties up to $250,000, with potential criminal repercussions including hefty fines and up to five years of imprisonment.
“Today I’m introducing a bill—the MEME Act—to ban a President or Member of Congress from issuing a meme coin,” Murphy tweeted, highlighting the Trump Coin as “the biggest corruption scandal in the history of the White House.” US Representative Sam Liccardo echoed this sentiment with a companion bill in the House. However, with Republicans steering both chambers, garnering the necessary support remains a formidable challenge for Democrats. This legislative push comes as U.S. Congress braces for intense debate over crypto legislation this summer, highlighting the contentious nature of crypto regulation.
Probing Deeper: The Subcommittee Inquiry
Simultaneously, Democratic Senator Richard Blumenthal, a key figure in the Permanent Subcommittee on Investigations (PSI), announced a preliminary probe into the Official Trump (TRUMP) token and Trump-backed platform World Liberty Financial (WLFI). The inquiry aims to scrutinize the intricate web of Trump’s crypto ventures, with particular focus on financial transactions and potential conflicts of interest.
Blumenthal expressed concern over the apparent commercialization of the presidency. “With his cryptocurrency schemes, Trump is putting a for-sale sign in front of the White House,” he stated. The PSI has dispatched letters to Fight Fight Fight, the entity behind Trump Coin, and WLFI, demanding records and communications with the Trump organization.
The investigation is honing in on the fees Trump is reportedly accruing from the TRUMP token. Notably, the token experienced a 50% surge in value from $9.40 to $13.65 after an April 23 announcement promised the top 220 holders an exclusive gala at the White House. Although the token once soared to $73.43, it has since plummeted by 85% to $11.13, according to CoinGecko.
The Crypto Landscape: Winners and Losers
Chainalysis data reveals a mixed bag for TRUMP token investors. While approximately 764,000 wallets saw losses, 58 investors have raked in profits exceeding $10 million each, collectively amassing an estimated $1.1 billion. The memecoin creator has also capitalized significantly, earning $320 million thus far, with an additional $1.3 million post-White House dinner announcement.
In an unexpected twist, a trucking logistics firm announced plans to bolster its TRUMP coin holdings via a $20 million convertible note issuance. Freight Technologies CEO Javier Selgas described the tokens as “an excellent way to diversify our crypto treasury and also an effective way to advocate for fair, balanced, and free trade between Mexico and the US.” This move underscores the broader implications of Trump’s crypto ventures beyond politics, as Trump’s Crypto Sherpa Bo Hines says crypto legislation on target for quick completion, indicating a swift resolution might be on the horizon.
Looking Ahead: Challenges and Opportunities
As Democrats intensify their scrutiny of Trump’s crypto dealings, questions abound about the long-term viability of these ventures and their impact on the political landscape. With significant Republican control in Congress, the path forward for the MEME Act and related legislation is fraught with obstacles. Yet, as the inquiry progresses, it could unearth revelations that sway public opinion and legislative priorities.
The unfolding drama around Trump’s crypto endeavors is a microcosm of larger discussions about the intersection of politics, finance, and emerging technologies. As lawmakers grapple with these challenges, the outcome of this political and legal battle could set precedents for regulatory frameworks in the burgeoning crypto sector.
Source
This article is based on: Democrats aim at Trump’s crypto profits with a 3-prong pincer move
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
