- US lawmakers seek to ban memecoins linked to public officials.
- The MEME Act aims to prevent officials from profiting from digital assets.
- Investors have lost billions due to the memecoin market decline.
The US Congress is considering a bill to ban memecoins linked to public officials. House Democrats plan to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act. California Representative Sam Liccardo confirmed the bill’s purpose.
This bill would prevent officials from issuing, endorsing, or profiting from digital assets. It applies to the president, vice president, Congress members, and senior executive officials. It also includes their spouses and dependent children. Liccardo stated that public officials should not use their positions for financial gain.
Trump’s Memecoins Spark Controversy
The MEME Act follows the launch of memecoins linked to Donald Trump and his wife, Melania Trump. Trump introduced the TRUMP token before taking office. Melania Trump launched her memecoin a few days later.
Both tokens have lost significant value since their launch. TRUMP has dropped by 82% from its peak, while MELANIA has fallen by 93%. Investors have suffered heavy losses as the memecoin market continues to decline. Many believe these losses highlight the need for stricter regulations.
Regulatory Concerns Over Memecoins
Hester Peirce, director of the SEC’s crypto task force, stated that most memecoins do not fall under SEC oversight. She suggested that Congress or the Commodity Futures Trading Commission (CFTC) should regulate them.
Many investors blame regulators for failing to protect them from memecoin risks. The lack of clear laws has allowed speculative assets to thrive. Lawmakers now face pressure to create strict guidelines for digital asset investments.
Other Legislative Efforts on Memecoins
The MEME Act is not the only proposal targeting memecoins. On February 20, Senator Cortez Masto introduced an amendment to limit memecoins linked to foreign investments. The amendment aims to prevent officials from promoting memecoins tied to Chinese investments.
Some experts believe memecoins contributed to the recent crypto market decline. Bitwise Chief Investment Officer Matt Hougan stated that the memecoin boom is ending. The collapse of major tokens has led to increased volatility in the market.
Future of Memecoins in the US
Lawmakers are pushing for stricter rules to prevent corruption in digital assets. The MEME Act seeks to stop officials from profiting from speculative investments. If passed, the bill could significantly impact the memecoin market.
Investors will closely watch how Congress moves forward. A strict regulatory framework could change the future of crypto trading in the US. The outcome of these bills will determine the fate of memecoins linked to public figures.
