House Democrats are set to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act, a potentially game-changing initiative on the memecoin rollout. The bill, backed by a dozen Democratic co-sponsors, aims to prohibit public officials, including the president, vice president, members of Congress, senior executive branch officials and their families, from issuing, sponsoring or approving digital assets such as memecoins.
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Presidential memecoins under congressional scrutiny in face of multi-billion losses
The crypto market could soon face new regulatory challenges in the US, as Democrats from House of Representatives prepare to introduce legislation targeting memecoins associated with public officials. The Californian representative Sam Liccardo announced on February 27 that he will introduce the Modern Emoluments and Malfeasance Enforcement Act (MEME Act), designed to prohibit government officials from issuing, sponsoring or approving digital assets.
In his announcement to ABC News, Liccardo stated that American public offices belong to the people and that public servants should not exploit their political authority for financial gain. The proposed legislation would affect a wide range of public servants including the President, Vice President, members of Congress, senior executive officials and members of their immediate families.
The bill already enjoys significant Democratic support, Liccardo claiming to have a dozen Democratic co-sponsors working to secure bipartisan support.
Memecoin market chaos sparks regulatory response
The initiative by Liccardo represents one of the first attempts to regulate the memecoin market against a backdrop of persistent legal uncertainty surrounding the crypto sector. The timing coincides with significant market turbulence triggered by memecoins.
The President Donald Trump launched his TRUMP token a few days before taking office on January 20. His wife, Melania Trump, quickly followed suit by launching her own memecoin on January 19. Since their launch, both tokens have experienced dramatic devaluations, TRUMP falling 82% from its all-time high and MELANIA plunging 93%, according to CoinGecko.
The consequences have been considerable, with reports indicating that around 813,000 crypto wallets have registered losses, totaling $2 billion following the collapse of the TRUMP token. Meanwhile, the Trump Organization and its partners reportedly collected around $100 million in transaction fees.
Presidential memecoins: the next regulatory frontier
Liccardo’s MEME Act isn’t the only legislative proposal targeting the controversial cryptocurrency segment. On February 20, Democratic Senator Cortez Masto submitted an amendment to S. Con. Res. 7, proposing to prohibit federal employees or officials from issuing, promoting or financially benefiting from memecoins in which the Chinese Communist Party invests.
These legislative efforts reflect growing concerns about the impact of memecoins on market stability and the potential for conflicts of interest when public officials are involved in their creation or promotion.
The proposed regulations are part of a broader trend of controversies surrounding political figures and memecoins worldwide, including legal challenges against Argentine president Javier Milei for allegedly promoting the LIBRA memecoin, which subsequently collapsed, causing significant losses to investors who.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
