US Congressman pushes MEME Act to ban officials potentially profiting from memecoins
US Democratic Congressman Sam Liccardo introduced a bill on Feb. 27 to prevent government officials and their families from profiting from cryptocurrencies, including memecoins.
The proposed legislation, known as the Modern Emoluments and Malfeasance Enforcement (MEME) Act, has gained support from multiple Democratic colleagues and is designed to make corruption criminal again.
If passed, the bill would prohibit elected officials like the president, vice president, members of Congress, and senior executive officials along with their spouses and dependent childrenfrom issuing, promoting, or financially benefiting from securities, commodities, or cryptocurrencies, including memecoins.
The lawmaker also views the bill as an expansion of the Emoluments Clause, which prevents officials from accepting gifts from foreign entities. He argued that profiting from political influence in financial markets should be equally restricted.
Additionally, it would penalize violators and require them to forfeit any illicit gains made before the bills enactment.
Why MEME Act
Liccardo said he introduced the MEME Act following the controversial launch of TRUMP, a memecoin linked to President Donald Trump.
According to him:
The tokens raised a lot concerns among folks about conflict of interest, about exploiting public office for personal gains.
The token, which debuted in January 2025, experienced extreme price volatility soaring to a $13 billion valuation before plummeting by over 82% from its peak. A similar coin associated with First Lady Melania Trump also crashed 93% within weeks.
Liccardo argued that the only beneficiaries of these coins were Trump and a select group of insiders, leaving hundreds of thousands of retail investors at a loss.
He said:
800,000 people bought this memecoin of Trumps. And guess what? Almost everyone of those 800,000 people lost a lot of money.
Liccardo described the situation as corruption while emphasizing the need for legislative action to protect investors from similar schemes in the future.
Considering this, the MEME Act is structured to eliminate financial conflicts of interest among public officials by enforcing strict prohibitions and penalties.
Despite its bold stance, the MEME Act faces significant legislative hurdles.
With Republicans controlling Congress, the bill is unlikely to pass in the current political climate. Even Liccardo reportedly admits that the proposal serves as a symbolic measure for now a foundation for future action if Democrats regain power.
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Text source: CryptoSlate
