A new bill in Congress is setting its sights on the intersection of politics and cryptocurrency, with Democratic Congressman Sam Liccardo leading the charge. The Modern Emoluments and Malfeasance Enforcement (MEME) Act aims to prevent high-ranking government officials, including members of Congress and the President, from launching, endorsing, or profiting from digital assets like cryptocurrencies, stocks, and commodities.
The proposal comes at a time of heightened scrutiny over political figures engaging with memecoins. Notable examples include token launches tied to former First Lady Melania Trump, Argentinian President Javier Milei, and Central African Republic President Faustin-Archange Touadéra. These instances have fueled concerns about ethical conflicts when public officials financially benefit from their political influence.
However, the MEME Act appears to focus heavily on Donald Trump and the TRUMP memecoin, which saw a dramatic rise to a $70 billion valuation before its price plummeted following the launch of MELANIA, a separate memecoin linked to the former First Lady. If passed, the legislation would force Trump to forfeit any profits derived from the sale of his digital asset, though it remains unclear how this would affect the team responsible for launching the coin.
Liccardo, a former prosecutor, posted a video on social media platform X, stating, “Let’s make corruption criminal again.” He stressed that the bill’s purpose is to prevent public officeholders from leveraging their positions for financial gain and to reduce risks of insider trading and foreign influence within the Executive Branch.
Despite Democratic efforts to push the MEME Act forward, it faces an uphill battle in a Republican-controlled Congress, making its passage unlikely in the short term. However, Liccardo is working to build momentum around the legislation, hoping to rally support ahead of future elections. Meanwhile, the Securities and Exchange Commission (SEC) has indicated that such tokens are more comparable to collectibles rather than securities under federal law. This distinction could shield companies behind coins like $TRUMP from facing legal action, as they may not fall under traditional financial regulations.
“Our public offices belong to the public, not the officeholders, nor should they leverage their political authority for financial gain. The Trumps’ issuance of meme coins financially exploits the public for personal gain and raises the specter of insider trading and foreign influence over the Executive Branch.”
If enacted, the MEME Act would introduce strict criminal and civil penalties for federal officials involved in financial dealings that could result in personal enrichment. The legislation seeks to establish clear ethical guidelines for digital assets, a sector that has largely operated without regulation despite its rapid growth.
The MEME Act represents one of the most significant congressional efforts to bring accountability to the crypto industry, which has been plagued by high-profile financial schemes involving political figures. While its future remains uncertain, the bill highlights growing concerns about the potential misuse of digital currencies by those in positions of power.
