U.S House Democrats to Prohibit Top Officials From Launching or Endorsing Memecoins

United States House Democrats are set to introduce new legislation aimed at banning the country’s top government officials and their families from profiting through personal memecoin launches. 

The proposed legislation targets the collapse of $TRUMP and MELANIA, the memecoins backed by President Donald Trump and his wife. The tokens, which were launched days before the president took office, initially surged due to their influence. However, they subsequently plummeted after early investors sold off their assets, resulting in major losses for many.

Public Officials Banned from Issuing Memecoins

On Thursday, California freshman Democrat Rep. Sam Liccardo announced his plans to introduce a bill that would ban key government officials and their families, from Congress to the White House, from issuing memecoins. Termed the Modern Emoluments and Malfeasance Enforcement (MEME) Act, the proposal would forbid federal officials from promoting a range of financial assets or from participating in any conduct likely to financially benefit themselves. 

Liccardo believes that President Trump and First Lady Melania Trump profited from their memecoins, benefiting investors who initially backed the memecoin. However, the assets were short-lived and left several investors with significant losses after their crash.

To address this issue, Liccardo aims to put an end to such practices. He noted that he already has twelve cosponsors for introducing the said legislation. 

“Let’s make corruption criminal again. Our public offices belong to the public, not the officeholders, nor should they leverage their political authority for financial gain. The Trumps’ issuance of meme coins financially exploits the public for personal gain, and raises the specter of insider trading and foreign influence over the Executive Branch”, Liccardo stated. 

Additionally, Liccardo wants to impose violators with criminal and civil penalties while stopping them from profiting from an asset issued before the bill’s enactment.  

The proposal follows a global trend of increasing scrutiny over the endorsement of cryptocurrencies by top government officials. Earlier this month, Argentine lawmakers pushed for the impeachment of President Javier Milei following his endorsement of a failed cryptocurrency project, Libra.