The Trump meme coin shot up 12% on Monday

The token, which trades under the ticker $TRUMP, jumped to $11.91 during Asian trading hours and became the best-performing digital asset of the day

A U.S. House Democrat is aiming to stop federal officials from profiting off memecoins.

Sam Liccardo, a Democrat from California, has proposed the MEME Act, legislation that seeks to prevent government officials, candidates, and political parties from engaging in cryptocurrency transactions other than investing in mutual funds or index funds.

The move comes amid scrutiny of President Donald Trump’s involvement in a token launched in January that shot up 12% on Monday after Trump called it “the greatest of them all” on Truth Social.

The token, which trades under the ticker $TRUMP, glided to $11.91 during Asian trading hours and became the best-performing digital asset of the day, according to TipRanks' Cryptocurrency Center.

Trump's Words Trigger Major Price Reaction

This isn't the first time Trump's words have sent $TRUMP sliding-but it arrived with a sharp price spike. The post, where he simply called the coin "cool,"l added to an already bizarre journey for the memecoin, which launched in January and once boasted a $14.5 billion market cap before crashing by two-thirds.

Despite that, trading activity has been intense. According to Reuters, blockchain analysts estimate the coin has generated between $86 million and $100 million in trading fees, even as thousands of small traders were left with losses.

This has led to scrutiny of entities tied to Trump, like CIC Digital, being listed as the recipients of trading revenue from the token's activity. Some ethics experts told Reuters that Trump's dual role as regulator and beneficiary raises "ethical concern," especially as the token's ownership is largely hidden behind opaque companies like Fight Fight Fight LLC.

Democrats Push Back with Regulation Plans

Meanwhile, a bipartisan group of senators is working on legislation to regulate stablecoins and place some crypto firms under the purview of federal regulators, according to the report.

The move follows a bipartisan push in the House to regulate cryptocurrencies broadly, aiming to prevent the sector from slipping through the cracks of existing financial regulations.

The senators are hoping to complete their bill by the end of the year, aiming to strike a balance between innovation and consumer protection in the fast-evolving cryptocurrency landscape.

As Trump-inspired memecoins like $TRUMP and $MELANIA spark ethical questions and volatile price swings, staying informed has never been more crucial for investors. This can be achieved by leveraging tools like TipRanks' Cryptocurrency Center to track their favorite cryptos. Click on the image below to stay ahead in this rapidly changing space.