On May 6, Senator Chris Murphy introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, a bill designed to prohibit top government officials — including the president, vice president, members of Congress, and senior executive branch leaders — from issuing, promoting, or investing in cryptocurrencies and similar digital assets. The restrictions would also extend to their immediate family members.

According to Murphy, the bill aims to curb the exploitation of political office for financial gain through volatile assets like memecoins. Offenders would face civil penalties of up to $250,000 and the forfeiture of any profits to the U.S. Treasury. Criminal consequences could include fines and prison terms of up to five years.

Representative Sam Liccardo has introduced a companion version of the MEME Act in the House of Representatives. However, with both chambers under Republican control, the bills face uncertain prospects unless bipartisan support materializes.

Parallel to the legislative push, Democratic Senator Richard Blumenthal announced that the Senate Permanent Subcommittee on Investigations (PSI) has opened a preliminary inquiry into Trump’s growing crypto empire. The investigation zeroes in on the Official Trump (TRUMP) token, the Trump-affiliated financial platform World Liberty Financial (WLFI), and related ventures.

The PSI has sent document requests to Fight Fight Fight — the company behind the TRUMP coin — and WLFI, demanding details of communications and financial arrangements with the Trump Organization. The subcommittee also seeks clarification on steps taken to mitigate conflicts of interest.

Adding to the controversy, Texas-based Freight Technologies revealed plans on April 30 to build a TRUMP coin treasury via a $20 million convertible note offering. CEO Javier Selgas praised the token as a vehicle for crypto treasury diversification and a means of supporting “free and balanced trade” between the U.S. and Mexico.

Meanwhile, in a recent interview with NBC News’s Kristen Welker on Meet the Press, Trump gave conflicting answers when asked whether he had profited from the crypto memecoin he launched in January, just days before re-entering the White House. 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

The post Democrats Take Aim at Trump’s Crypto Ventures with New Legislation and Federal Inquiry appeared first on DeFi Planet.