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28-02-2025 00:06
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House Democrats Propose Bill Banning Political Meme Coins
Key Takeaways:
Lawmakers propose barring high-ranking officials and their families from launching or endorsing digital tokens tied to political figures. The bill is designed to address ethical concerns over conflicts of interest and the use of public office for personal gain. Although the proposal faces steep political challenges, it sparks a broader debate on transparency and accountability in digital finance. The discussion reflects growing calls for clearer regulatory boundaries in a market where politics and cryptocurrency increasingly intersect.ABC News reported Thursday that House Democrats are preparing new legislation.
Led by Congressman Sam Liccardo (D-CA), they plan to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act.
The bill would bar senior U.S. officials and their family members from issuing, sponsoring, or endorsing digital assets, securities, futures, and commodities—specifically in response to President Donald Trump’s recent involvement with the $TRUMP meme coin.
Details of the MEME Act
According to the February 27 report, Liccardo and his Democratic Party constituents plan to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which would prohibit top U.S. officials and their family members from profiting off cryptocurrencies.
The MEME Act is unlikely to pass in the current Republican-controlled Congress.
However, its prospects could improve if Democrats retake control in the 2026 midterm elections, potentially forcing Trump to return any profits from his namesake cryptocurrency.
“Let’s make corruption criminal again,” Liccardo told reporter John Parkinson. “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,” he added.
Donald Trump Faces Meme Coin Criticism
The meme coin $TRUMP debuted just days before the U.S. presidential inauguration, launching alongside $MELANIA, a token tied to now-First Lady Melania Trump.
Shortly after its release, $TRUMP surged to over $74 before experiencing a sharp decline, mirroring the drop in the value of $MELANIA.
According to CoinGecko, $TRUMP is down 82 percent from its all-time high last month, while $MELANIA has fallen by 93 percent.
The U.S. President and First Lady have previously launched branded NFTs, continuing their involvement in Web3.
Despite Trump’s crypto-friendly regulatory stance, the Trumps’ meme coins have faced criticism online and in political circles due to substantial investor losses.
“Last cycle we had NFTs, so Trump sold NFTs. This cycle we have meme coins,” Variant Fund CLO Jake Chervinsky said in a January 2025 X post. “Is $TRUMP seriously a surprise to you?”
Restoring Confidence in Public Service
Trust in governance depends heavily on separating personal gain from political authority—a line increasingly blurred by crypto-related ventures like $TRUMP.
Though Liccardo’s MEME Act faces an uphill battle, its introduction itself highlights a pressing dilemma: How much influence should politicians wield in speculative digital markets?
The answer will shape not just cryptocurrency policy but the credibility of democratic institutions.
Ultimately, preserving public confidence may require decisive action far beyond symbolic legislation.
Frequently Asked Questions (FAQs)
What ethical concerns does the proposed bill raise?
The measure highlights worries about public officials potentially using their office to secure personal financial benefits through digital tokens. Such a mix of public duty and private profit could erode trust in government decision-making and blur the lines of accountability.
How might restricting political involvement in meme coins affect the cryptocurrency market?
By limiting political figures from endorsing or profiting from meme coins, the proposal could reduce market volatility driven by speculative hype and conflict of interest. However, some observers argue that the impact might be largely symbolic given the challenging legislative environment.
Are there alternative approaches to managing conflicts of interest in political finance related to digital assets?
Experts suggest that, aside from outright bans, enhanced disclosure requirements and independent oversight mechanisms could offer a path to greater transparency. These alternatives might help ensure that personal financial interests do not compromise public service, fostering a more accountable framework.
What potential impact could this legislation have on public trust in government?
If elected officials are seen to profit from speculative digital assets, public confidence in their commitment to serving the common good may decline. This concern fuels calls for reform, as maintaining clear boundaries between public duty and personal enrichment is essential for democratic legitimacy.
How does this legislative effort fit into the larger context of cryptocurrency regulation?
The proposal reflects a broader debate about the need for regulatory clarity in digital markets. By targeting practices that merge political power with speculative investments, the measure may serve as a precursor to more comprehensive rules designed to ensure that emerging financial technologies operate with greater ethical oversight.
The post House Democrats Propose Bill Banning Political Meme Coins appeared first on Cryptonews.
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