- The bill aims to prevent conflicts of interest and market manipulation in crypto.
- Legal experts debate challenges in defining memecoins and official endorsements.
- Legal experts debate challenges in defining memecoins and official endorsements.
The Democratic leadership of House Democrats plans to propose the Modern Emoluments and Malfeasance Enforcement (MEME) Act through Congressman Sam Liccardo (D-CA) on February 28, 2025. The MEME bill uses a broad target approach to target multiple senior U.S. governmental officials and their family members up to dependent children.
The legislation seeks to exclude senior U.S. officials from participating in the creation or sponsorship of digital assets and securities and from recommending or endorsing these financial products. Because of the accompanying conflict of interest questions, the legislation directly responds to President Donald Trump’s recent release of the $TRUMP meme coin.
The MEME Act includes both criminal and civil penalties for violations. It also applies retroactively, meaning officials who profit from existing crypto ventures, like Trump and First Lady Melania Trump with their $TRUMP and $MELANIA tokens, could face consequences. Liccardo emphasized the need to address what he calls financial exploitation tied to public office. Democratic legislators Ro Khanna (D-CA) and Ted Lieu (D-CA) stand behind the bill, yet it remains unlikely to succeed in the Republican-controlled Congress.
Crypto Ventures by Public Officials Stir Debate
President Trump launched the $TRUMP meme coin just before his inauguration in January 2025, alongside Melania Trump’s $MELANIA token. Initially, $TRUMP reached a peak valuation exceeding $51 billion, according to CoinGecko data. However, it has since dropped by 82 percent from its all-time high. Similarly, $MELANIA has declined by 93 percent, raising concerns about investor losses and the ethics of political figures engaging in speculative markets. These ventures follow Trump’s earlier involvement with branded NFTs, signaling a pattern of Web3 engagement.
Critics argue that such activities blur the line between public service and personal profit. The rapid rise and fall of these tokens have fueled discussions about market manipulation and foreign influence risks. For example, Representative Mike Collins (R-GA) has drawn attention for promoting obscure meme coins, boosting their value through public statements. Liccardo’s spokesperson confirmed the MEME Act would also cover officials profiting from third-party crypto promotions, broadening its scope beyond just token issuance.
Implications for Cryptocurrency Regulation and Governance
The MEME Act highlights ongoing tensions in cryptocurrency regulation. It reflects growing calls for clearer rules to prevent public officials from leveraging their positions in digital markets. While the bill may not advance soon, its introduction signals a push for transparency and accountability. Experts suggest alternatives like stricter disclosure requirements could address conflicts of interest without outright bans.
Beyond legislation, the debate affects public trust in government. High-profile cases, such as Argentina’s President Javier Milei facing fraud charges over a crashed token, underscore the stakes. The MEME Act could set a precedent for future reforms, shaping how policymakers balance innovation with ethical oversight in the evolving crypto landscape.
