House Democrats Target Public Officials' Crypto Involvement with New MEME Act

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.

House Democrats are setting their sights on restricting public officials from benefitting financially from digital assets. A new bill aims to prevent top government officials, including the president, from issuing or endorsing cryptocurrencies.

This follows recent concerns over the rapid decline of the $TRUMP meme coin.

The $TRUMP cryptocurrency launched just over a month ago but has since seen its price decrease drastically as early investors unloaded their holdings. Thousands of holders are estimated to have sold at a loss, taking an aggregate loss of billions of dollars.

This has prompted some lawmakers to demand tighter rules to ensure officials do not misuse their positions for personal gain.

Freshman California Democrat to Propose Modern Emoluments and Malfeasance Enforcement (MEME) Act

Rep. Sam Liccardo (D-CA) plans to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act. This legislation would prohibit high-ranking officials—president, vice president, members of Congress, and senior executive branch leaders—and their spouses and dependent children from holding or profiting from securities, futures, commodities, or digital assets.

Liccardo’s interest stems from the recent launch of meme coins by President Donald Trump and First Lady Melania Trump. These ventures have sparked ethical concerns among some.

As Trump takes on a new role in 2024, his involvement in the $TRUMP token has raised questions about potential conflicts of interest. Despite launching the token in January—just a week before Trump took office—the meme coin has since lost a significant portion of its initial value.

This rapid price decline has resulted in substantial losses for thousands of token holders, who invested heavily during the initial offering.

House Democrats Counterpart’s Bill on Digital Asset Regulation

Earlier this year, House Democrats unveiled a bill to regulate the digital asset industry. The bill, titled the "Digital Asset Innovation and Protection Act," was introduced by Maxine Waters (D-CA), chair of the House Financial Services Committee, and Stephen Garcia (D-TX), the committee's youngest member.

The bill aims to create a comprehensive regulatory framework for digital assets, covering areas such as stablecoins, institutional custody, and anti-money laundering.

It also seeks to establish a new agency within the Treasury Department to oversee the digital asset industry. The bill is part of Democrats' broader agenda to regulate the financial industry and protect consumers.

California Democrat Plans to Unveil Modern Emoluments and Malfeasance Enforcement (MEME) Act

Sam Liccardo (D-CA) plans to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act. The legislation would bar high-ranking officials, including the president, vice president, members of Congress, and senior executive branch leaders—and their spouses and dependent children—from profiting from any capital gains on securities, futures, commodities, or digital assets.

Liccardo’s interest in this topic was sparked by the recent launches of President Donald Trump’s $TRUMP and First Lady Melania Trump’s $MELANIA tokens. These ventures have raised concerns about potential corruption and the misuse of public office for personal financial benefit.

Liccardo’s thoughts are also focused on the implications for trust in government institutions. He believes that permitting elected officials to personally capitalize on digital assets could erode public trust and create conflicts of interest.

Moreover, Liccardo is highlighting the potential for insider trading and foreign influence to impact decisions within the executive branch. Officials engaging in such activities would face criminal and civil penalties under the MEME Act.

To address issues related to the initial release of $TRUMP and similar ventures, the proposed bill would impose penalties on any public official who promotes or invests in digital assets in anticipation of the law’s enactment.

Despite Liccardo’s efforts, the MEME Act faces an uphill battle. With Republicans controlling both the House and Senate, it is unlikely to be passed in the near term. However, the first-term Democrat aims to rally support for the bill and may consider reintroducing it in a future session with a Democratic majority.