House Democrats are preparing to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act. The legislation, led by California Representative Sam Liccardo, aims to prohibit public officials and their families from issuing, endorsing, or profiting from any security, future, commodity, or digital asset.
What Ignited the MEME Act Initiative?
The MEME Act is a response to the recent launch of $TRUMP, a meme coin introduced by President Trump just days before his inauguration last month.
While the Trump token rose significantly to nearly $70 shortly after its launch, it later plummeted to around $12, leaving many investors with substantial losses.
Despite early investors profiting handsomely, the token’s rapid decline sparked outrage among critics, who accused Trump of exploiting his position for personal gain.
Rep. Liccardo, a freshman congressman representing Silicon Valley and former mayor of San Jose, described the situation as “self-evidently unethical.“
He emphasized that public officials should not exploit their positions for financial gain, citing the launch of the $TRUMP memecoin as a glaring example of insider trading risks and potential foreign influence.
“Let’s make corruption criminal again,” Liccardo declared in an interview, underscoring the need for stricter regulations on public officials’ financial activities.
The MEME Act proposes four things:
- Prohibition on issuance and endorsement from public officials and their immediate families
- Retroactive measures to relinquish any profits derived from such ventures prior to the bill’s enactment
- Criminal and civil penalties, including fines and imprisonment
- Broader scope covering other financial instruments that could present conflicts of interest
Probability of the Act Passing
Despite backing from a dozen Democratic cosponsors, the legislation faces a challenging path in the Republican-controlled Congress. Nevertheless, it carries symbolic importance by highlighting ethical lapses in government.
Moreover, it reflects growing calls for regulatory oversight in the volatile world of meme coins. As cryptocurrency debates continue globally, the MEME Act could serve as a blueprint for future reforms to safeguard investors and democratic institutions.
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