US Congress Targets Memecoins: Proposed MEME Act Aims to Ban Public Officials from Crypto Profits

The United States Congress is reportedly preparing to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act, a bill aimed at banning public officials from issuing, promoting, or profiting from digital assets, including memecoins like Donald Trump’s TRUMP token.

The legislation, spearheaded by California Representative Sam Liccardo, has gained support among House Democrats, with efforts underway to build bipartisan backing.

Why the MEME Act?

Liccardo argues that public officials should not exploit their positions for personal financial gain, citing concerns about insider trading, foreign influence, and corruption.

• Who is affected? The bill targets the president, vice president, Congress members, senior executive branch officials, their spouses, and dependent children.
• What does it prohibit? Public officials would be banned from issuing, sponsoring, or endorsing any security, commodity, or digital asset.

Memecoin Market Under Fire

The MEME Act comes amid the ongoing collapse of Trump-linked memecoins:

• TRUMP token has plunged 82% from its January 19 all-time high.
• Melania Trump’s memecoin (MELANIA) has suffered an even worse decline, falling 93% since launch.

The broader memecoin market downturn has wiped out billions in investor capital, leading to increased scrutiny from regulators and lawmakers.

Regulatory Response and Market Impact

Despite the SEC’s reluctance to regulate memecoins, officials like Hester Peirce suggest that Congress or the CFTC should take action.

Other recent legislative moves include:

• Feb. 20: Senator Cortez Masto proposed an amendment to prohibit federal officials from profiting from memecoins tied to Chinese investments.
• Market Reaction: Experts believe the memecoin crash is contributing to the broader crypto sell-off, with Bitwise CIO Matt Hougan suggesting that the memecoin boom is coming to an end.

What’s Next?

With Congress set to debate the MEME Act, its passage could reshape the memecoin market, particularly for politically linked tokens. Investors should brace for increased regulation and continued volatility in the crypto space.