Democrats target Trump crypto profits with bold $1.1B crackdown

Key Points

• Democrats target Trump crypto profits with bold $1.1B crackdown
• MEME Act could ban officials from crypto profits
•  Subcommittee probes Trump’s token and business ties
  
•  $1.1B in profits for top TRUMP coin holders
  
•  Creator pocketed $320M from TRUMP memecoin surge

Democratic lawmakers are stepping up their offensive against Donald Trump’s booming crypto ventures, which have generated over $1.1 billion in profits for top investors. On May 6, a coordinated three-prong strategy was unveiled: two bills aimed at halting political profiteering from crypto and a subcommittee inquiry into Trump’s digital asset dealings.

At the heart of this move is the Modern Emoluments and Malfeasance Enforcement Act (MEME Act). Introduced by Senator Chris Murphy, this legislation would ban federal officials and their families from issuing, sponsoring, or promoting any cryptocurrency or digital asset while in office. Violators could face civil penalties up to $250,000 and criminal fines or prison sentences up to five years.

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

Representative Sam Liccardo introduced matching legislation in the House. But with Republicans controlling both chambers, bipartisan support will be essential.

Simultaneously, Senator Richard Blumenthal announced that the Permanent Subcommittee on Investigations (PSI) has launched a probe into the TRUMP token, Trump’s platform World Liberty Financial (WLFI), and their potential conflicts of interest. Letters demanding records and communications have been sent to the companies behind the TRUMP coin, Fight Fight Fight, and WLFI.

The PSI inquiry focuses on fees collected by Trump, the memecoin’s sharp value increases, and potential manipulation, especially the 50% spike following the April 23 announcement that the top 220 TRUMP holders would receive gala dinner invitations at the White House.

TRUMP memecoin fortunes: Winners, losers, and growing scrutiny

Since its January 18 launch, the TRUMP token has seen wild price swings. It surged to an all-time high of $73.43 before crashing 85% to its current price around $11.13, according to CoinGecko.

Despite the volatility, the memecoin has attracted about two million wallets, with 54,000 new buyers joining after the White House dinner news. But the wealth distribution is stark:

• 764,000 holders — mostly small investors — have lost money.

• Just 58 major investors have each earned more than $10 million, combining for $1.1 billion in profits.

• The memecoin’s creator has raked in $320 million, plus another $1.3 million after the gala dinner announcement.

Adding to the crypto frenzy, Freight Technologies, a trucking logistics firm, revealed plans to create a TRUMP coin treasury through a $20 million convertible note issuance. The firm’s CEO, Javier Selgas, praised the token as a tool for promoting balanced trade between the US and Mexico. On top of this, the company acquired $5.2 million worth of Fetch.ai’s FET token in April.

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

For broader context, such corporate adoption of crypto mirrors moves by other firms diversifying into blockchain and tokenized assets, like the rising interest in crypto custody services to secure their holdings.

Political crypto profits stir broader market shifts

This battle over Trump crypto profits arrives as the broader crypto market navigates turbulent waters. Political events, including Trump’s influence, are increasingly triggering market shifts. For example, analysts have pointed to how Trump’s tariffs and Bitcoin’s revaluation triggered a huge market shift, further entangling politics and digital assets.

Meanwhile, Bitcoin’s resilience — and potential to outlast the US dollar — remains a hot debate among experts, with trends highlighted in Bitcoin outlasting US dollar. This ongoing narrative amplifies the significance of Trump’s crypto engagement.

Even traditional markets are being reshaped by crypto’s expanding footprint. Japanese firm MetaPlanet recently mirrored MicroStrategy’s Bitcoin play, buying Bitcoin for its corporate treasury — another sign of crypto’s deepening ties to conventional finance.

As the TRUMP token saga unfolds, market participants also watch developments like BSC’s gas fees volatility, discussed in BSC gas fees, which can influence memecoin trading costs and profitability.

The combination of political, corporate, and retail engagement with crypto signals that this sector will remain a flashpoint — not just for profit, but also for regulation and policy battles ahead.