Democrats Launch Bipartisan Effort to Curb Trump's Cryptocurrency Profits

US Democrat lawmakers have initiated a comprehensive strategy to curb President Donald Trump’s cryptocurrency ventures. This multi-faceted approach includes the introduction of two bills and the launch of a subcommittee inquiry. The primary goal is to limit Trump’s ability to profit from these initiatives.

The first bill, known as the Modern Emoluments and Malfeasance Enforcement Act, or the MEME Act, is designed to prevent federal officials from leveraging their positions to gain profits from memecoins. Senator Chris Murphy, a Democrat, introduced this legislation on May 6. If enacted, the MEME Act would prohibit the president, vice president, members of Congress, senior executive branch officials, their spouses, and children from issuing, sponsoring, or promoting any security, future, commodity, or digital asset. Violators could face civil penalties of up to $250,000 and be required to forfeit any profits to the US Treasury. Criminal penalties, including fines and up to five years in prison, could also be imposed.

In the House of Representatives, US Representative Sam Liccardo, another Democrat, introduced companion legislation. However, the Republicans control both chambers, making it necessary for the legislation to secure Republican support to pass.

Simultaneously, Democratic Senator Richard Blumenthal, the ranking member of the Permanent Subcommittee on Investigations (PSI), announced on May 6 that the committee is conducting a preliminary inquiry into the Official Trump (TRUMP) token and the Trump-backed platform World Liberty Financial (WLFI), along with other associated business ventures. The PSI has sent letters to the companies behind the Trump coin, Fight Fight Fight, and WLFI, requesting records and communications between these companies and the Trump organization. The subcommittee is also seeking information on the steps taken to address potential conflicts of interest.

Key areas of interest for the PSI include the fees Trump is earning from the TRUMP token and the significant increase in its value from $9.40 to $13.65 following an announcement on April 23 that the top 220 holders of the token would be invited to a gala dinner at the White House. The TRUMP coin reached its all-time high of $73.43 shortly after its launch on January 18, but it has since lost 85% of its value and is currently trading at $11.13.

Approximately two million wallets have purchased the TRUMP token, with an additional 54,000 acquiring it after the dinner announcement. While around 764,000 of these holders, mostly with small investments, have incurred losses, 58 investors have made profits exceeding $10 million each, totaling an estimated $1.1 billion. The memecoin creator has reportedly earned $320 million so far, with an additional $1.3 million coming in since the White House dinner announcement.

In a related development, a trucking logistics firm announced plans on April 30 to establish a TRUMP coin treasury through a $20 million convertible note issuance. Javier Selgas, the CEO of Freight Technologies, stated that the tokens provide an excellent way to diversify their crypto treasury and advocate for fair, balanced, and free trade between the US and Mexico. The firm also acquired $5.2 million of the Fetch.ai network's utility token FET on April 1.