#MEMEAct Meme Coin Controversy (2025)
In one of the most controversial crypto events of 2025, former U.S. President Donald Trump launched a meme cryptocurrency called $TRUMP, sparking widespread backlash and regulatory action.
Launch & Financial Impact:
The $TRUMP coin debuted on January 17, 2025, just three days before Trump’s second inauguration. Within two weeks, it generated over $100 million in transaction fees and peaked at $75.35 per coin before crashing by more than 80%.
An estimated 764,000 wallets suffered financial losses totaling nearly $2 billion.
Exclusive Access for Top Investors:
High-tier $TRUMP coin holders were reportedly offered private White House dinners, with seats priced at $1.5 million each. This raised major ethical concerns and accusations of “pay-to-play” schemes.
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Legislative Response: The MEME Act
In response, Connecticut Senators Blumenthal and Murphy introduced the MEME Act (Modern Emoluments and Malfeasance Enforcement Act).
Its goal:
Ban presidents, vice presidents, lawmakers, and their families from launching or promoting cryptocurrencies.
Address potential conflicts of interest, corruption, and the abuse of political influence in the digital finance space.
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Ripple Effects on Broader Crypto Legislation:
The controversy also derailed momentum behind the bipartisan GENIUS Act, a stablecoin regulation bill.
Democrats withdrew support, insisting on stricter safeguards for anti-money laundering and national security before moving forward.
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Crypto Market Fallout:
The collapse of $TRUMP triggered:
A wave of investor distrust
Increased fears about political interference in crypto
Heavy losses for everyday investors, while large holders profited
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Conclusion:
The $TRUMP coin controversy exposed the risks of political entanglement in cryptocurrency markets. It prompted public outrage and swift legislative efforts to prev
