Senate Democrats Target Trump Family in New Bill Banning Crypto Issuance by Officials

Senate Democrats have introduced new legislation aimed at curbing financial gains by federal official, including former President Donald Trump and his family, through cryptocurrency ventures.

The move comes amid growing scrutiny over Trump-linked digital asset projects, including a meme coin that has drawn significant public attention.

The proposed legislation, titled the Modern Emoluments and Malfeasance Enforcement (MEME) Act, was unveiled on May 6 by Senator Chris Murphy.

New Bill Aims to Ban Top US Officials from Promoting or Issuing Crypto

The bill seeks to bar the president, vice president, members of Congress, senior executive officials, as well as their spouses and children, from issuing, sponsoring, or promoting digital assets, including securities, commodities, and futures.

Violations could carry steep consequences: civil penalties up to $250,000 and the forfeiture of any profits to the U.S. Treasury.

Criminal charges may also be pursued, with potential fines and prison sentences of up to five years.

Representative Sam Liccardo has introduced a companion version in the House. However, with Republicans currently holding majorities in both chambers, the bill’s path forward remains 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

In a parallel effort, Senator Richard Blumenthal, ranking member of the Senate’s Permanent Subcommittee on Investigations (PSI), announced a preliminary probe into the Trump-affiliated TRUMP token and associated platform World Liberty Financial (WLFI).

The subcommittee has requested documents and communications from the companies involved, including Fight Fight Fight—the developer behind the Trump coin.

Investigators are focusing on potential conflicts of interest and financial benefits accruing to Trump, particularly from a recent price surge.

On April 23, the TRUMP coin jumped nearly 50%, following an announcement that the top 220 holders would be invited to a gala 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

The token, which launched on January 18, initially peaked at $73.43 before crashing to just over $11, according to CoinGecko.

Blumenthal emphasized the importance of transparency and accountability, especially given the direct involvement of public figures in financial products.

“These ventures raise serious ethical and legal questions,” he stated.

Florida Latest State to Abondon Bitcoin Reserve Efforts

In another development, Florida has become the latest US state to abandon efforts to establish a strategic Bitcoin reserve, dealing another setback to the broader push for state-level crypto adoption.

Two proposed bills — House Bill 487 and Senate Bill 550 — were officially withdrawn from the legislative process on May 3.

The legislative session had adjourned a day earlier, on May 2, without taking action on the crypto-focused proposals.

Their removal places Florida alongside a growing list of states — including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma — that have recently failed to pass legislation allowing Bitcoin-based investment strategies.

According to BitMEX co-founder Arthur Hayes, the United States is unlikely to significantly increase its Bitcoin holdings, citing the country’s ballooning national debt and the cultural image tied to Bitcoin investors.

In a recent interview, Hayes cast doubt on the idea that the U.S. would proactively build a “strategic Bitcoin reserve,” beyond the nearly 200,000 BTC already in its possession.