Anti-Memecoin Law for US Politicians Proposed: Aptly Called MEME Act

“Let’s make corruption criminal again,” — that’s the rallying cry from Californian Democratic congressman Sam Liccardo as he spearheads a push to ban holders of public office and their families from launching and endorsing memecoins and other investment vehicles.

Liccardo is leading a group of Democratic congressional representatives who will reportedly soon table new legislation known as the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which if passed would see memecoins like $TRUMP and $MELANIA banned. 

This exploitation of regular investors for the benefit of insiders by the President of the United States is part of what Liccardo wants to put an end to. But the other element he’s concerned about is the huge potential for corruption and bribery these kinds of memecoins present:

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.

Representative Sam Liccardo, Congressman for California

The MEME Act is expected to be introduced to the Congress on February 27 local time, but isn’t expected to pass into law for at least the next two years while the Republicans control both the House and the Senate.

Related: Exposed: Coffeezilla Uncovers Memecoin Mastermind’s Confession of Widespread Market Manipulation

Legislation a Response To $TRUMP and $MELANIA Launches

Speaking to America’s ABC News, Liccardo said he believes the $TRUMP and $MELANIA memecoins enriched the Trump family and many insider investors around the world, while fleecing retail investors.

$TRUMP launched last month, just days before Donald Trump’s inauguration and initially soared in value, before the inevitable fall as insiders cashed their profits leaving retail investors holding the bag. According to CoinGecko, $TRUMP currently sits at US$12.59 (AU$20.26), down almost 83% from its all-time high of US$73.43 (AU$118.18) achieved the day before Trump’s inauguration. 

$MELANIA has fared even worse, it’s currently down over 93% from its all-time high.

Despite its name, the new legislation isn’t just targeting memecoins. It seeks to prohibit most public office holders from issuing, sponsoring or endorsing any kind of digital asset, security or commodity. Liccardo says the legislation would include the possibility for both civil and criminal penalties and would apply retroactively. 

That means it could be used to prevent Trump and his family from continuing to profit from their memecoins. 

The Californian Congressman also claims the MEME Act would prevent Trump from selling stock in Truth Social while he serves as president. Although Liccardo didn’t mention it, the legislation would presumably also impact the Trump family’s DeFi project, World Liberty Financial.

Other Memecoin Regulatory Developments

In other regulatory news on memecoins, Hester Peirce, the Director of the Securities and Exchange Commission’s (SEC) Crypto Taskforce, has said that memecoins don’t fall under the jurisdiction of the SEC, telling Bloomberg in a February 11 interview:

Many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.

Hester Peirce, Director of the SEC Crypto Taskforce

Peirce added that it made more sense for memecoins to be overseen by another regulator, such as the Commodity Futures Trading Commission (CFTC):

Maybe that’s something the CFTC wants to address. But many of those, I think, probably are not within our jurisdiction.

Hester Peirce, Director of the SEC Crypto Taskforce

Related: SEC Commissioner Gives Memecoins the Cold Shoulder Amid $2 Billion in TRUMP Token Losses

Another proposal targeting memecoins has also appeared in Congress recently, with  Democratic Senator Cortez Masto on February 20 submitting an amendment to concurrent resolution S. Con Res. 7. The amendment would see federal employees or officials banned from “issuing, promoting, or financially benefitting from memecoins in which the Chinese communist party invests.”