House Democrats Unveil MEME Act to Crack Down on Political Memecoins Like TRUMP Token
- House Democrats propose the MEME Act to curb political profiteering from memecoins.
- TRUMP and MELANIA tokens face scrutiny as Congress targets political coin endorsements.
- The MEME Act aims to prevent U.S. officials from endorsing or profiting from digital assets.
House Democrats plan to submit the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which prevents government officials and their family members from benefiting monetarily by creating or endorsing memecoins and digital assets. Leading the effort, Representative Sam Liccardo explained the MEME Act would enforce financial restrictions upon political figures, including the President, Vice President, Congress members, senior executive officers, and their dependent family members together with their spouses.
The move by Liccardo has emerged as a reaction to the recent media attention surrounding TRUMP and MELANIA memecoins issued by President Donald Trump and First Lady Melania Trump. The memecoins launched shortly before Trump took office in January 2025 experienced major price drops that brought attention to the ethical implications when public servants profit from assets like these. Liccardo emphasized that these activities risk damaging the public office by facilitating corruption, insider trading and foreign interference in U.S. governance.
Impact of the MEME Act on Political Memecoins
The MEME Act works to combat politicians who use the unpredictable memecoin market to generate financial gains. The proposed bill would completely ban public officials from distributing digital assets like TRUMP and MELANIA and impose criminal and civil punishment on violators. Lawmaker Liccardo declared that the new legislation includes retroactive features to collect monetary gains from sales of the contentious token projects.
Liccardo predicts the proposed legislation will succeed if Democrats obtain majority status in future legislative sessions. The bill demonstrates the partys position regarding financial responsibility for government roles. The proposed legislation emerges at a time when cryptocurrency markets need increased transparency because high-ranking officials pose potential financial risks to the public.
Ongoing Concerns About Memecoin Market Regulation
The memecoin market attracts increased regulatory attention because TRUMP and MELANIA tokens suffered major market declines. The TRUMP token suffered an 82% decline from its peak value, and MELANIA dropped 93%, according to CoinGecko data. Political figures launching their own tokens face criticism as it negatively impacts token investors who bought during the tokens popular times.
The movement to regulate the memecoin space includes Liccardos regulatory measure and other emerging regulatory activities. Democratic Senator Cortez Masto presented an amendment to a concurrent resolution that sought to stop federal employees from generating profits from memecoins related to foreign entities especially Chinese Communist Party entities. The growing push for digital asset regulation demonstrates the necessity to establish distinct rules that will safeguard investors participating in the constantly developing crypto markets.
Read more: https://www.tronweekly.com/house-democrats-unveil-meme-act-on-memecoins/
Text source: TronWeekly
