Democrats target Trump’s crypto profits with 3-prong strategy

A three-pronged offensive from Democrats is zeroing in on the crypto profits linked to Trump.

Chainalysis reports that Trump’s memecoin has attracted roughly two million since it debuted, though one-third of them have experienced losses.

Senate Democrats are set to roll out a new proposal that would block presidents, legislators, senior executive branch officials, their spouses, children, and relatives from participating in the issuance or endorsement of crypto assets.

In a statement released on May 6, Democratic Senator Chris Murphy said the MEME Act, formally known as the Modern Emoluments and Malfeasance Enforcement Act, seeks to block federal officials from profiting off memecoins while in office.

If lawmakers pass the law, it could impose fines of up to $250,000 on violators and mandate that they hand over any profits to the U.S. government.

The law might also criminally prosecute those who break it, subjecting them to fines and possible jail time of up to five years.

Democrat Sam Liccardo added his support by proposing companion legislation in the House of Representatives.

Despite the push for the legislation, Republicans hold the majority in both chambers, so the legislation will rely on their approval to move forward.

On May 6, Democratic Senator Richard Blumenthal, a senior member of the Permanent Subcommittee on Investigations (PSI), announced that the committee is launching an initial investigation into the Official Trump token, the Trump-backed platform World Liberty Financial (WLFI), and related business activities.

As part of the investigation, the PSI has issued requests for documents and communications to the companies involved with the Trump coin, Fight Fight Fight, and WLFI, seeking records related to their interactions with the Trump organization.

In addition, Blumenthal pointed out that the subcommittee is demanding answers regarding the actions the firm has taken to tackle any conflicts of interest that may exist.

The PSI has flagged key points of concern, including the fees the president collects from the TRUMP token and the nearly 50% increase in its value, from $9.40 to $13.65, following the April 23 announcement that the top 220 token holders would be invited to a White House gala dinner.

According to CoinGecko, the Trump coin soared to an all-time high of $73.43 just after its January 18 launch.

Since then, it has dropped 85% in value, with its current price standing at $11.13.

According to blockchain analysis firm Chainalysis, following the dinner announcement, an extra 54,000 wallets added the TRUMP token to their holdings, while around two million people have bought the token.