A new bill is making its way through the US Congress, in a bid to stop politicians from launching their own cryptocurrency coins.

This move comes after many investors lost money big-time on the TRUMP meme coin, which is associated with US President Donald Trump.

A new bill has been introduced in the US Congress that aims to prevent politicians from launching their own cryptocurrency coins. This move follows concerns raised over several investors losing money on TRUMP meme coin, an asset associated with former President Donald Trump.

The coin went on a wild ride in recent months, with its price surging to highs before crashing over 80% from those peaks. As a result, several investors ended up losing money, a situation that has now attracted the attention of regulators and finance officials.

House Democrats are proposing legislation to restrict government officials, including the President and members of Congress, from endorsing or sponsoring financial assets, a move prompted by the former president’s decision to launch his own meme coin earlier this year.

California Rep. Sam Liccardo is spearheading a new bill, formally titled the Modern Emoluments and Malfeasance Enforcement (MEME) Act, to prevent the President, Vice President, members of Congress, high-ranking government officials, and their immediate family members from endorsing, issuing, or sponsoring any financial asset.

This bill arises from concerns over the Trump family launching a meme coin named TRUMP and another asset linked to Melania Trump. Both coins quickly gained attention and hit huge milestones, boasting multi-billion-dollar valuations just hours after they debuted. However, the interest in these assets later dwindled.

Both TRUMP coin and Melania Trump’s asset lost over 80% of their peak values, a situation that left many investors in the red.

Liccardo believes that the Trump family used their political positions to personally benefit from these cryptocurrencies, adding that they leveraged their influence for personal gain.

“The goal of this law is to keep federal officials from profiting off digital assets, stocks, or anything else that the government regulates,” Liccardo said.

“This is important because it could create conflicts of interest or open the door to corruption. For example, if a politician knows about upcoming regulations that could affect the price of a cryptocurrency, they could use that information to make a profit on the cryptocurrency before the public knows about the regulations.”

Liccardo is also concerned about the potential for foreign influence on US politics, especially given the global nature of cryptocurrencies. The MEME Act is designed to prevent federal officials from using their positions to profit from these assets, ensuring that their interests remain aligned with the public good.