The Trump (TRUMP) meme coin saw a sharp price rejection at the $16 resistance level on Thursday

This downturn highlights the growing tension between political engagement and speculative investing in the meme coin ecosystem.

The Trump (TRUMP) meme coin experienced a sharp price rejection at the $16 resistance level on Thursday, coinciding with intensifying scrutiny from U.S. lawmakers and a controversial token holder gala event. This downturn highlights the growing tension between political engagement and speculative investing in the meme coin ecosystem.

The sell-off follows a high-profile TRUMP Gala, where the top 220 holders of the TRUMP token were invited to dine with former President Donald Trump. The top 25 wallets are reportedly eligible for a private audience with Trump himself, a move that has raised both eyebrows and regulatory questions across the crypto and political spheres.

Adding fuel to the fire, TRON founder Justin Sun claimed via X (formerly Twitter) that he holds the largest stake in the TRUMP token. Despite the buzz, the token failed to hold ground.

At press time, TRUMP was trading at $14.26, down approximately 0.5%, reflecting broader concerns around its sustainability amid political and regulatory turbulence.

TRUMP Token Under Fire Amid Political Crypto Crackdown

In a major development that could reshape the future of politically themed tokens, House Democrats have introduced the ‘Stop TRUMP in Crypto Act,’ a bill designed to bar current and former presidents and their families from owning, promoting, or profiting from cryptocurrencies while in office.

Spearheaded by Rep. Maxine Waters and backed by 14 Democratic co-sponsors, the legislation aims to prevent potential conflicts of interest and misuse of non-public information for financial gain. The bill follows on the heels of the Modern Emoluments and Malfeasance Enforcement (MEME) Act, introduced in February by Rep. Sam Liccardo, which was similarly prompted by the launch of politically themed tokens like TRUMP and MELANIA.

The move comes as House Republicans are also planning to hold a hearing on cryptocurrencies and the economy, further increasing the regulatory spotlight on the industry.

The bill to ban presidents from holding crypto is being introduced as part of a broader package of legislation to mitigate the risk of a government shutdown and ensure the smooth functioning of the U.S. economy.

The bill's introduction is a significant development in the growing tension between cryptocurrency and the political sphere. As the value of cryptocurrencies continues to rise and their use becomes more widespread, lawmakers are increasingly grappling with the implications of this new asset class for the integrity of government and the financial system.

The bill's critics argue that it is a necessary measure to safeguard democratic transparency and prevent presidents from abusing their office for personal financial gain. They cite the potential for presidents to use non-public information to make trades or promote specific tokens, which could give them an unfair advantage and undermine trust in the administration.

Trump supporters, on the other hand, view the bill as a targeted attack against the former president's growing influence in the crypto space. They argue that the bill infringes on the president's right to invest in new technologies and participate in the same financial opportunities available to the American people.

The bill's passage remains uncertain, as it will need to be approved by both the House and Senate and signed by President Biden to become law. However, its introduction is a clear indication that lawmakers are taking the issue of cryptocurrency and presidents' financial activities seriously.

The downturn in TRUMP also highlights a critical divergence within the meme coin market: tokens driven purely by narrative are facing headwinds, while those with strong utility and infrastructure backing are gaining favor with investors.

One standout in this evolving landscape is Bitcoin Pepe (BPEP), a meme token that's breaking the mold by aligning cultural virality with cutting-edge blockchain development.

Bitcoin Pepe: Merging Memes and Utility

Positioned as the first meme-centric Layer 2 solution on the Bitcoin network, Bitcoin Pepe is attracting significant interest from retail and institutional investors. The project fuses Bitcoin's security with Solana-style scalability, enabling faster and more efficient decentralized applications.

In addition to its meme factor, Bitcoin Pepe is differentiating itself by integrating real-world utility through strategic partnerships.

The project has announced collaborations with Super Meme for the secure launch of PEP-20 tokens, Catamoto for ensuring fair launches on the BASE chain, Plena Finance for potentially integrating BPEP into its mobile-first DeFi services, and GETE Network to explore Web3 gaming use cases with BPEP.

This multifaceted expansion is helping Bitcoin Pepe stand out as more than just another meme coin; it's a potential cornerstone in the next generation of cultural and technical crypto assets.

Investor sentiment around Bitcoin Pepe remains strong, with over $11 million raised in its ongoing presale. The BPEP token is currently priced at $0.0359, with the presale expected to conclude on May 31, 2025. A centralized exchange listing is anticipated shortly after, which could act as a major catalyst for near-term price discovery and broader adoption.

As bullish momentum returns to the broader cryptocurrency market