Democratic senators in the U.S. Senate are once again wielding the regulatory stick, this time targeting the Trump family and the digital asset empire behind them. A new bill titled (Modern Compensation and Misconduct Enforcement Act) (MEME) was announced on May 6, explicitly prohibiting the President, Vice President, members of Congress, and senior officials and their families from participating in the issuance, promotion, or support of any form of digital assets—whether securities, commodities, meme coins, or NFTs, all are 'banned.'
The focus is directly on Trump's digital asset layout: regulatory 'hunting' begins
This legislation is led by Democratic Senator Chris Murphy, and the background is self-evident. In the past few months, **'Trump Coin' and its associated 'World Liberty Financial (WLFI)' platform have sparked tremendous controversy, becoming the focus of the crypto market.** Particularly on April 23, when Trump announced he would invite 220 Trump Coin holders to a White House dinner, the token price surged nearly 50% in an instant, triggering market frenzy and political skepticism.
This overlap of 'politics + finance + crypto' has become a 'gray area' in the eyes of lawmakers. Murphy stated in a statement: 'Public officials seeking personal economic benefits through digital assets may lead to conflicts of interest, abuse of power, and even corruption, which must not be tolerated.' The bill stipulates that any violations will face fines of up to $250,000, with all proceeds turned over to the Treasury.
Representative Sam Liccardo simultaneously introduced a companion bill in the House of Representatives. However, given that both chambers are currently controlled by the Republican Party, the legislative prospects of this bill are full of uncertainty, and the flavor of political confrontation has already become apparent.
The congressional investigation team intervenes, and Trump's 'crypto layout' faces accountability
At the same time, the Senate Permanent Subcommittee on Investigations (PSI) announced the initiation of a preliminary investigation into Trump Coin and WLFI. Senior committee member Richard Blumenthal publicly stated: 'When public figures directly participate in or are associated with financial products, it is not only a market issue but also a moral and legal one.'
It is reported that the investigation team has requested the Trump Coin development team, WLFI, and relevant partners to provide complete internal documents and communication records, focusing on whether there are undisclosed conflicts of interest, insider trading, market manipulation, and other issues. Blumenthal emphasized: 'Such reckless behavior must be scrutinized; the public has the right to know the facts.'
Data shows that since its issuance on January 18, Trump Coin once soared to a high of $73.43, before dropping to the current approximate $11. The 'behind-the-scenes drivers' and 'event-driven effects' of the price volatility are the key points the investigation team hopes to clarify.
States like Florida 'exit the stage': State-level Bitcoin reserve strategies cool down
On the other hand, Florida has recently abandoned plans to establish Bitcoin strategic reserves, becoming yet another state to exit the 'Bitcoin reserve race.' House Bill 487 and Senate Bill 550 were officially withdrawn from the legislative process on May 3, meaning Florida's related legislative attempts have completely failed. In fact, over the past few months, several states including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma have successively abandoned similar plans.
Industry insiders generally believe that this trend reflects the **'alienation of state governments from Bitcoin strategies'** is spreading. BitMEX co-founder Arthur Hayes recently also expressed skepticism: 'The U.S. has a huge national debt burden and a long-standing culture of distrust towards Bitcoin. Unless there is a fundamental policy shift, the U.S. will not actively expand its Bitcoin holdings.'
Under the regulatory storm, the 'political risk' of the crypto market is rising
From legislation and investigations targeting the Trump family to the withdrawal of Bitcoin reserve plans by multiple states, and the congressional regulatory offensive and defensive actions surrounding digital assets, **the crypto market is facing an increasingly intense atmosphere of 'political risk.'** Whether it is the market frenzy triggered by Trump Coin or the indecision of various states in crypto strategies, both indicate that the entanglement between digital assets and politics is intensifying.
In this context, investors aiming to capture policy turning points, capital shifts, and changes in sentiment can no longer rely solely on 'on-chain data' to see the whole picture. Mlion.ai provides traders with 'on-chain + off-chain' integrated insights by combining on-chain tracking, policy sentiment analysis, KOL opinion aggregation, and capital flow exploration, helping to maintain clarity in complex games.
The future crypto market needs not only technical and financial knowledge but also an understanding of politics.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice! Investment carries risks; enter the market with caution.