Key Takeaways
- The bill would bar high-ranking officials and their families from issuing, endorsing, or financially benefiting from securities, commodities, and digital assets.
- Liccardo acknowledged that his bill is unlikely to pass in the current Republican-controlled Congress but sees it as an important step toward establishing accountability.
A new bill aimed at preventing U.S. public officials from issuing and profiting from cryptocurrencies, including meme coins, is set to be introduced in Congress.
Representative Sam Liccardo, a freshman Democrat from California, announced his plan to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which would prohibit top government officials, including the president, vice president, members of Congress, senior executive branch officials, and their families, from engaging in cryptocurrency-related financial activities.
The proposed legislation comes in response to the recent launch of the Official Trump (TRUMP) token, a meme coin associated with former President Donald Trump. Trump’s cryptocurrency, which debuted in January just days before he took office, initially surged in value before experiencing a steep decline.
The volatility led to significant losses for many investors, including some of Trump’s supporters in the crypto space. Critics have raised concerns about the ethical and financial implications of a sitting president profiting from digital assets, with Liccardo arguing that such behavior “raises concerns about transparency, insider trading, and improper foreign influence.”
According to a draft of the MEME Act, the bill would bar high-ranking officials and their families from issuing, endorsing, or financially benefiting from securities, commodities, and digital assets. The legislation would also require Trump to return any profits earned from the TRUMP token. “Let’s make corruption criminal again,” Liccardo stated, emphasizing that public office should not be used as a tool for financial gain.
Meme coins, often launched as internet jokes with no intrinsic value, have gained widespread popularity in the crypto market. While some see them as an innovative financial tool, others consider them highly speculative assets that primarily benefit insiders.
The launch of the TRUMP token, along with a separate cryptocurrency issued by former First Lady Melania Trump, has fueled debates over the role of public officials in the digital asset space. Since its peak in mid-January, the TRUMP coin has lost over 80% of its value, while the MELANIA token has plunged by more than 90%, according to CoinGecko data.
The Securities and Exchange Commission (SEC) has largely refrained from regulating meme coins, with SEC crypto task force director Hester Peirce noting that such oversight would likely fall under the jurisdiction of Congress or the Commodity Futures Trading Commission (CFTC). However, the significant losses suffered by investors in Trump’s token have renewed calls for stricter regulations to protect the public from potential financial manipulation.
Liccardo acknowledged that his bill is unlikely to pass in the current Republican-controlled Congress but sees it as an important step toward establishing accountability. “This is about ensuring that government officials do not exploit their positions for financial benefit,” he said. The legislation has already gained support from a dozen Democratic lawmakers, and proponents hope it will gain traction in future sessions of Congress.
Trump has historically defied conventional presidential norms by openly endorsing and promoting commercial products, from branded Bibles to cryptocurrency-related ventures.
His involvement in digital assets, particularly the TRUMP meme coin, has drawn scrutiny due to its financial windfall for early investors and potential conflicts of interest. Reports indicate that Trump and his business entities have generated tens of millions of dollars in trading fees from the token’s launch.
The controversy surrounding the TRUMP coin is part of a broader discussion on the need for clearer cryptocurrency regulations. In a related move, Democratic Senator Catherine Cortez Masto recently proposed an amendment seeking to ban federal employees from financially benefiting from memecoins with ties to foreign entities, including the Chinese government.
As the debate continues, Liccardo and his colleagues are pushing for legislative reforms to ensure greater transparency in financial dealings involving public officials. “The Trumps’ issuance of memecoins financially exploits the public for personal gain and raises the specter of insider trading and foreign influence over the executive branch,” he said.
