- House Democrats propose a bill to prevent officials from profiting from digital assets.
- Rep. Liccardo’s MEME Act targets ethical concerns with politicians endorsing cryptocurrencies.
- The MEME Act includes retroactive penalties to address $TRUMP coin and similar ventures.
House Democrats are setting their sights on restricting public officials from benefiting financially from digital assets. A new bill aims to prevent top government officials, including the president, from issuing or endorsing cryptocurrencies, following concerns over the recent decline of the $TRUMP meme coin.
The $TRUMP cryptocurrency launched just over a month ago but has since lost significant value as early investors offloaded their holdings. Thousands of holders took heavy losses totaling billions of dollars, prompting some lawmakers to demand tighter rules to ensure officials do not misuse their positions for personal gain.
California Democrat Moves to Regulate Crypto Involvement
Rep. Sam Liccardo, a freshman Democrat from California, plans to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act.
This legislation would bar high-ranking officials, such as the president, vice president, members of Congress, and senior executive branch leaders—and their spouses and dependent children—from profiting from securities, futures, commodities, or digital assets.
Related: House Democrats Challenge Bill on Digital Asset Regulation
Liccardo says the launch of meme coins by public figures, including President Donald Trump and First Lady Melania Trump, raises ethical concerns. He believes their participation in crypto markets may have boosted their finances while leaving investors exposed to risks. Trump launched the $TRUMP coin in January, just before taking office, and Melania Trump released a similar coin a week prior.
Addressing Concerns of Corruption and Insider Trading
The MEME Act would impose both criminal and civil penalties on federal officials found engaging in financial activities that could benefit them personally. Liccardo emphasizes that allowing elected officials to capitalize on digital assets undermines public trust and creates potential conflicts of interest.
Related: Robert F. Kennedy Jr. Vows to End White House War Over Bitcoin
He also highlights the risk of insider trading and foreign influence shaping decisions in the executive branch. Under the proposed bill, any public official promoting or investing in digital assets before the law’s enactment would face penalties. This retroactive provision addresses issues linked to the initial release of $TRUMP and similar ventures.
Challenges and Legislative Outlook
Even with Liccardo’s push, the MEME Act faces difficult odds. Republican majorities in both the House and Senate make passage unlikely in the near term. Still, the first-term Democrat aims to gather support and may revisit the topic under a future Democratic majority.
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