TLDR
- Senate Democrats have introduced a new bill to restrict cryptocurrency activities by federal officials and their families.
- The legislation targets explicitly the Trump Family’s involvement in digital asset ventures and related promotions.
- The MEME Act, introduced by Senator Chris Murphy, bans senior officials and their immediate families from promoting or issuing crypto.
- The bill includes penalties of up to $250,000 in civil fines and up to five years in prison for criminal violations.
- A companion bill has been introduced in the House by Representative Sam Liccardo.
Senate Democrats have introduced a new bill seeking to restrict cryptocurrency activities by federal officials and their families. The proposed law directly addresses digital asset concerns, specifically targets the Trump Family’s involvement in crypto projects. The legislation arrives amid rising public scrutiny of crypto ventures tied to President Donald Trump and his associates.
Trump Family Faces Crypto Ban Push
Senator Chris Murphy introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act on May 6 to impose strict crypto regulations. The bill bans the president, vice president, Congress members, and senior officials from promoting or launching digital assets. It also prohibits spouses and children of these individuals, including the Trump Family, from engaging in crypto promotions.
The legislation outlines severe penalties, including civil fines up to $250,000 and mandatory forfeiture of profits to the U.S. Treasury. Additionally, criminal violations may result in up to five years and monetary penalties. Supporters argue the law ensures ethical boundaries and reduces conflicts of interest in federal leadership.
Senator Murphy emphasized that public officials must avoid using their positions for financial gain through unregulated digital markets. Representative Sam Liccardo introduced a matching bill in the House to advance this effort. However, the current Republican majority in both chambers may challenge the bill’s passage.
Today I’m introducing a bill – the MEME Act – to ban a President or Member of Congress from issuing a meme coin.
The Trump Coin is the biggest corruption scandal in the history of the White House. @RepLiccardo and I are determined to put an end to this corruption – for good. pic.twitter.com/nQL9ZfIYYV
— Chris Murphy 🟧 (@ChrisMurphyCT) May 6, 2025
Lawmakers Probe TRUMP Coin Price Surge
Senator Richard Blumenthal launched an investigation into the TRUMP coin and its affiliated platform, World Liberty Financial (WLFI). The Senate’s Permanent Subcommittee on Investigations requested documents from entities tied to the Trump Family’s crypto project. Authorities are examining the 50% price spike that followed a White House gala invitation for TRUMP coin holders.
With his cryptocurrency schemes, Trump is putting a for sale sign in front of the White House. That’s why, as Ranking Member of the Permanent Subcommittee on Investigations, I’m launching an inquiry into this brazen corruption whose scope & scale is staggering. pic.twitter.com/3SiaCrthN8
— Richard Blumenthal (@SenBlumenthal) May 6, 2025
The TRUMP coin, launched January 18, initially peaked at $73.43 before falling to just above $11. This dramatic volatility prompted questions about potential manipulation and personal gain.
Officials are now focusing on whether the Trump Family received undisclosed financial benefits from the project’s performance. Investigators are evaluating if any violations of federal ethics laws or securities regulations occurred. The probe will assess whether public promotion by political figures influenced market behavior.
Trump Family Role Fuels Crypto Concerns
Florida has officially dropped two bills aiming to establish a strategic Bitcoin reserve, ending its recent legislative crypto efforts. House Bill 487 and Senate Bill 550 were withdrawn on May 3 after lawmakers adjourned without a vote. This development places Florida among several states that are halting similar initiatives.
States like Wyoming, Pennsylvania, and South Dakota have also failed to approve crypto-related investment legislation this year. These actions reflect increasing caution among state governments amid federal scrutiny of crypto markets. The Trump Family’s involvement in high-profile tokens may have contributed to these shifts.
Arthur Hayes, BitMEX co-founder, noted the U.S. is unlikely to expand its Bitcoin holdings under current conditions. He cited the national debt and public perception of Bitcoin as key deterrents. The Trump Family’s high-visibility role in crypto may further complicate future governmental adoption.
The MEME Act represents a significant step in tightening oversight over digital assets linked to federal officials and their families. The Trump Family remains central to the ongoing debate about ethics, transparency, and accountability in crypto activities. With multiple investigations underway, further developments are expected in the coming weeks.
