Democratic senators have put forth fresh legislation aimed at minimizing financial gains from cryptocurrency projects by federal officials, including former President Donald Trump and his relatives.
This legislative push arises amid heightened scrutiny of Trump-associated digital asset initiatives, notably a meme coin that has recently garnered considerable public curiosity.
On May 6, Senator Chris Murphy introduced the proposed legislation known as the Modern Emoluments and Malfeasance Enforcement (MEME) Act.
New Bill Aims to Prohibit High-ranking US Officials from Endorsing Cryptocurrency
The MEME Act seeks to prohibit the president, vice president, members of Congress, senior executive officials, as well as their spouses and children, from issuing, sponsoring, or promoting digital assets such as securities, commodities, and futures.
Should officials violate these provisions, they could face severe repercussions, including civil penalties of up to $250,000 and the forfeiture of any gains to the U.S. Treasury.
Additionally, criminal charges may be pursued, prompting potential fines and prison sentences of up to five years.
A corresponding bill has been introduced in the House by Representative Sam Liccardo. However, with Republicans holding majorities in both legislative chambers, the bill’s prospects remain uncertain.
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
Senator Richard Blumenthal, who serves as the ranking member of the Senate’s Permanent Subcommittee on Investigations (PSI), concurrently announced a preliminary investigation into the Trump-affiliated TRUMP token and its associated platform, World Liberty Financial (WLFI).
The subcommittee has requested documentation and communications from the involved companies, including Fight Fight Fight, the developer behind the Trump coin.
Investigators are particularly examining potential conflicts of interest and any financial benefits to Trump, especially following a recent price surge.
On April 23, the TRUMP coin saw a notable increase of nearly 50%, prompted by news that the top 220 holders would be invited to a gala hosted at the White House.
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
Initially launched on January 18, the token peaked at $73.43 before plummeting to just above $11, as reported by CoinGecko.
Blumenthal underscored the necessity for transparency and accountability, particularly with public figures’ involvement in financial products, stating, “These ventures raise serious ethical and legal questions.”
Florida Latest State to Abandon Bitcoin Reserve Initiatives
In related news, Florida has recently become the latest state to discontinue efforts to create a strategic Bitcoin reserve, marking another hurdle in the attempt for state-level cryptocurrency adoption.
Two proposed bills — House Bill 487 and Senate Bill 550 — were officially withdrawn from consideration on May 3, following the legislative session’s adjournment a day earlier, on May 2, without action on these crypto-related proposals.
This withdrawal places Florida among a growing number of states, including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, that have failed to pass bitcoin investment legislation in recent times.
Arthur Hayes, co-founder of BitMEX, commented on this trend, expressing skepticism about the U.S. significantly increasing its Bitcoin holdings, citing the nation’s expanding national debt and the perception of Bitcoin investors.
In a recent interview, Hayes questioned the likelihood of the U.S. proactively establishing a “strategic Bitcoin reserve” beyond the nearly 200,000 BTC already held.
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