Trump family memecoins under fire as Senate democrats push crypto ban bill

Senate Democrats have launched a bold move against Trump family memecoins, introducing a bill that could block current and former officials—including Donald Trump and his relatives—from profiting off cryptocurrency ventures.

The proposed Modern Emoluments and Malfeasance Enforcement (MEME) Act directly addresses concerns over Trump family memecoins, particularly the controversial TRUMP token, which has seen wild price swings amid allegations of insider benefits.

Why Trump family memecoins are in the spotlight

The Trump family memecoins saga took a dramatic turn when the TRUMP token surged nearly 50% in late April after promoters announced exclusive perks for top holders, including a White House gala invitation. This sparked immediate backlash, with critics accusing the Trump-affiliated project of exploiting political influence for financial gain.

Senator Richard Blumenthal, leading a Senate subcommittee probe, called the Trump family memecoins a “textbook case of ethical conflicts.” Investigators are now demanding records from Fight Fight Fight, the developer behind the token, and World Liberty Financial (WLFI), the linked platform.

The meme act: cracking down on trump family memecoins and beyond

The newly proposed MEME Act doesn’t just target Trump family memecoins—it aims to ban all federal officials, their spouses, and children from issuing, promoting, or benefiting from cryptocurrencies. Penalties could include:

• $250,000 fines

• Forfeiture of profits to the U.S. Treasury

• Up to five years in prison for criminal violations

Senator Chris Murphy, the bill’s sponsor, argued that Trump family memecoins set a dangerous precedent. “Public officials shouldn’t use their status to pump speculative assets,” he stated. However, with Republicans controlling Congress, the bill faces steep opposition.

A rollercoaster ride for the Trump family memecoins

Launched in January, the TRUMP token initially skyrocketed to $73.43 before crashing to $11, leaving retail investors reeling. Its recent pump-and-dump patterns have drawn comparisons to other celebrity memecoins, reinforcing calls for stricter oversight.

Analysts suggest Trump family memecoins could be a test case for broader crypto regulation. “If this bill passes, it won’t just affect Trump—it could reshape how politicians engage with crypto forever,” said blockchain policy expert Mark Carter.

Florida drops Bitcoin reserve plan in another blow to crypto

In related news, Florida has officially scrapped its proposal to establish a state Bitcoin reserve, dealing another setback to crypto adoption efforts at the legislative level. Bills HB 487 and SB 550, which sought to allow Florida’s treasury to hold Bitcoin as part of its investment strategy, were quietly withdrawn on May 3—just one day after the state’s legislative session adjourned. This follows similar failed attempts in Wyoming, South Dakota, North Dakota, and Oklahoma, where crypto-friendly bills have stalled or been rejected.

The decision comes amid growing skepticism from lawmakers about the risks of state-backed crypto exposure. Notably, Florida’s withdrawal aligns with BitMEX co-founder Arthur Hayes’ recent comments that the U.S. government is unlikely to expand its Bitcoin holdings beyond the 200,000 BTC already seized from criminal cases like the Silk Road bust. “With the national debt crisis, the Treasury isn’t rushing to buy Bitcoin,” Hayes stated in a recent interview.

What’s next for Trump family memecoins?

As regulators tighten their grip, the future of Trump family memecoins remains uncertain. The MEME Act faces an uphill battle in a divided Congress, but the heightened scrutiny signals a growing crackdown on politically linked crypto ventures. The TRUMP token, despite its volatility, continues to trade, with supporters and skeptics locked in a heated debate over its legitimacy.

Legal experts warn that even if the bill fails, federal agencies like the SEC could still take action against projects deemed exploitative. Meanwhile, investors brace for further turbulence as lawmakers demand transparency. The outcome could set a precedent for how cryptocurrencies tied to public figures are regulated—or banned—in the future. This developing story underscores the high-stakes clash between politics, finance, and decentralized technology.

Stay tuned for updates. Stay glued to The Bit Gazette for up-to-date crypto news and expert opinions.