President Donald Trump’s involvement in cryptocurrency is now subject to heightened scrutiny. Senate Democrats have initiated a preliminary inquiry focusing on potential ethical violations and the financial details of his digital asset ventures.
Details of the Senate Inquiry
This initial investigation is being led by Senator Richard Blumenthal, the ranking Democrat on the Senate’s Permanent Subcommittee on Investigations (PSI). Official correspondence requesting financial records and detailed responses has been sent to the leadership of both Fight Fight Fight LLC and World Liberty Financial. The probe targets several entities linked to President Trump:
- Fight Fight Fight LLC: The company responsible for issuing the TRUMP memecoin.
- CIC Digital LLC: Identified as a co-creator of the TRUMP coin and an issuer of NFTs affiliated with Trump.
- Celebration Cards LLC: Another entity connected with Trump NFTs.
- DTTM Operations LLC: Manages the intellectual property rights of President Trump.
- World Liberty Financial (WLFI) along with its related corporate structures.
The PSI is particularly interested in understanding the measures these companies take to identify or prevent foreign investment, how profits are distributed, and whether individuals facing investigation or sought by authorities are permitted to participate.
Underlying Concerns and Allegations
The investigation arises from concerns regarding possible breaches of state ethics laws, connections to foreign investors, and potential involvement in schemes that could imply a “pay-to-play” dynamic for access to the President. The letters explicitly state, “PSI is conducting a preliminary inquiry into potential conflicts of interest and violations of law concerning President Trump’s crypto activities and the financial transactions of related companies with foreign individuals, governments, and crypto firms.”
Catalyst for Increased Scrutiny
The inquiry gained significant momentum following reports of a potential $2 billion transaction. This reported deal involves MGX, an investment fund based in Abu Dhabi, and the cryptocurrency exchange Binance, with a crucial role expected for USD1, a stablecoin reportedly tied to the Trump brand. This connection was highlighted by Eric Trump, the President’s son, during the recent TOKEN2049 conference held in Dubai.
Legislative Responses and Broader Criticism
This situation has spurred legislative initiatives. Senator Chris Murphy has introduced the MEME Act, a proposed law that would prohibit the President and members of Congress from issuing memecoins or other financial assets. Senator Murphy commented, “The Trump Coin is the biggest corruption scandal in the history of the White House.” He conveyed this sentiment in a tweet on May 6, 2025:
Today I’m introducing a bill – the MEME Act – to ban a President or Member of Congress from issuing a meme coin. The Trump Coin is the biggest corruption scandal in the history of the White House. @RepLiccardo and I are determined to put an end to this corruption – for good. pic.twitter.com/nQL9ZfIYYV
(Note: The placeholder for the tweet URL from the original source is retained above.)
Representative Sam Liccardo, a California Democrat, has also developed related legislation known as the Modern Emoluments and Malfeasance Enforcement (MEME) Act. Furthermore, Congresswoman Maxine Waters, the ranking Democrat on the House Financial Services Committee, has voiced criticism regarding President Trump’s crypto projects, specifically mentioning the promotion of the USD1 stablecoin. Alongside Senator Elizabeth Warren, she formally requested the U.S. Securities and Exchange Commission (SEC) to provide any information it possesses concerning President Trump’s ties to WLFI. Additionally, Senator Warren and nine other Democratic senators withdrew their support for a separate stablecoin bill, citing the need for amendments and its perceived connections to President Trump.
Investigative Limitations
It is important to note that as the minority party in the Senate, Democrats have limited authority to issue subpoenas without the support of the subcommittee’s Republican chairman, Senator Ron Johnson. This factor could potentially impact the scope and depth of their investigative capabilities.
Michael combines data-driven research with real-time market insights to deliver concise crypto and bitcoin analysis. He’s passionate about uncovering on-chain trends and helping readers make informed decisions.