CONGRESS Democrats have taken a hit at Trump’s meme coin by introducing a bill

California Democrat Rep. Sam Liccardo is leading the push against Trump’s meme coin, though he has insistently argued that taking aim at the president’s crypto token

Congress Democrats are taking aim at Trump’s meme coin. California Democrat Rep. Sam Liccardo has introduced a bill in the House to ban top federal officials and their families from issuing or promoting meme coins and other financial instruments, citing ethical concerns.

Liccardo, also a former criminal prosecutor, argued that the nation should reinstate stricter anti-corruption laws, targeting Trump’s meme coin.

According to him, Trump exploited his authority, office, and the people for his personal gain, which is unethical.

Trump’s token has also sparked concerns regarding transparency, potential insider trading, and improper foreign influence. Even some of Trump’s supporters disapprove of the meme coin launch.

As such, Liccardo decided to introduce legislation against the token on Thursday. The Modern Emoluments and Malfeasance Enforcement, or MEME Act, is an attempt to prevent the president, vice president, members of Congress, senior executive officials, and their immediate families from engaging in such conduct. Violators could face fines and up to five years in prison.

The bill will prevent the president, any of his family members or members of Congress from issuing or promoting securities and crypto assets like meme coins.

The legislation will also introduce criminal and civil penalties and bans on some financial assets. Additionally, private investors who lose their funds on meme coins promoted by state officials will be permitted to sue.

Liccardo added, “You need to have some enforcement mechanism and a private right of action helps to keep everybody honest.”

However, the bill may fail to pass in the now Republican-controlled Congress, but he believes that the legislation will lay the groundwork for Democrats if they regain power or at least show their stance against Trump’s corruption.

Meme coins have long been considered risky and speculative assets, with most critics comparing them to Ponzi schemes that only profit insiders and unethical celebrities.

When Trump first released his token, its price quickly surged to almost $70 before dropping to roughly $12. Nevertheless, analysts believe that the token generated millions of dollars for the launching entities before its immense price drop from its trading fees.

The First Lady’s MELANIA token also saw a trajectory similar to that of Trump. It surged explosively after its launch but has since fallen from its peak days, trading at only $0.8522. Not to mention, one of the developers involved in the MELANIA token launch was found to be tangled with the LIBRA token scandal, for which Argentine President Javier Milei is still being investigated.

In addition to his and Melania’s token releases, Trump and his sons launched a decentralized crypto platform in 2024 and even supported online stores selling crypto-themed sneakers.

However, the president has tried to distance himself from his family’s crypto projects and overall businesses by signing an ethics agreement that will hinder him from making outside business deals.