Democrats Launch Multi-Pronged Crackdown on Trump’s Crypto Profits

Democratic lawmakers in Washington are targeting former President Donald Trump’s expanding crypto ventures through a coordinated three-pronged strategy involving new legislation and a congressional investigation. The moves come amid growing concern over Trump’s financial ties to a controversial memecoin that has surged in popularity—and volatility.

MEME Act Targets Political Profiteering from Crypto

Senator Chris Murphy (D-CT) introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act on May 6, aiming to prohibit top federal officials—including the president, vice president, members of Congress, and executive branch leaders—from issuing, promoting, or profiting from digital assets such as memecoins. The proposed legislation extends the ban to immediate family members as well.

Violators of the MEME Act could face civil fines up to $250,000 and be forced to surrender any profits to the U.S. Treasury. Criminal penalties, including prison time of up to five years, are also on the table.

A companion bill was introduced in the House of Representatives by Rep. Sam Liccardo (D-CA). However, with Republicans currently holding the majority in both chambers of Congress, the legislation faces a tough path forward without bipartisan support.

Senate Subcommittee Investigates TRUMP Token and Affiliates

In tandem with the legislative effort, Senator Richard Blumenthal (D-CT), a senior member of the Senate Permanent Subcommittee on Investigations (PSI), announced a preliminary inquiry into the Official Trump (TRUMP) token, World Liberty Financial (WLFI)—a Trump-backed crypto platform—and affiliated entities.

As part of the investigation, PSI has sent formal requests for records and internal communications to the companies behind the TRUMP token, including the little-known firm Fight Fight Fight, as well as WLFI. The subcommittee is seeking clarity on potential conflicts of interest and what measures, if any, the companies have taken to mitigate them.

Among the issues flagged by investigators is a dramatic price spike in the TRUMP token—from $9.40 to $13.65—after an April 23 announcement promising gala White House dinner invitations to the coin’s top 220 holders.

Who’s Winning—and Losing—on the Trump Coin?

Since its January 18 launch, the TRUMP token has attracted significant attention. Blockchain analysis firm Chainalysis reports that over 2 million wallets have purchased the token. Despite its initial all-time high of $73.43, the coin has plummeted nearly 85% and is currently trading around $11.13, according to data from CoinGecko.

Still, the coin has created a small class of mega-profiteers. Chainalysis found that just 58 investors have raked in over $10 million each, with total profits exceeding $1.1 billion. In contrast, roughly 764,000 wallet holders—most with small stakes—have lost money on the coin.

The memecoin’s creator has reportedly earned $320 million to date, including $1.3 million in new gains since the White House gala announcement.

Private Sector Enters the Fray

Despite the controversy, corporate interest in the TRUMP token is growing. On April 30, Freight Technologies, a trucking logistics firm, announced plans to build a TRUMP coin treasury through a $20 million convertible note issuance.

CEO Javier Selgas called the investment “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 U.S.”

The company had also recently purchased $5.2 million worth of Fetch.ai’s FET token on April 1 as part of its broader crypto strategy.

Political and Regulatory Storm Brewing

While Democrats have fired the opening shots in what may become a major battle over ethics and cryptocurrency in politics, the outcome remains uncertain. With the Republican-controlled Congress unlikely to pass the MEME Act without modifications, and Trump allies defending his crypto moves as innovative and market-driven, the next few months could be critical in shaping how digital assets are treated in U.S. political life.