California Representative Sam Liccardo, a Democrat who is new to Congress and represents the tech hub of Silicon Valley, recently expressed surprise that his first legislative action targets a financial venture initiated by President Donald Trump. “This wasn’t part of the agenda I intended to pursue upon entering office,” remarked Liccardo, who previously served as mayor of San Jose.
The prompt introduction of a meme coin by the president shortly after assuming office last month necessitated a response, Liccardo explained. Those who invested in the meme coin at launch initially saw gains, but the value quickly plummeted, resulting in substantial losses for many. Even cryptocurrency enthusiasts within Trump’s base found the move distasteful.
Liccardo criticized the venture, labeling it as inherently unethical and questioning why such actions aren’t explicitly prohibited. Concerns of transparency, insider trading, and potential foreign influence swirl around Trump’s meme coin, he noted.
The proposed legislation, named the Modern Emoluments and Malfeasance Enforcement (MEME) Act, aims to prohibit high-ranking government officials, including the president, members of Congress, and their immediate families, from creating or promoting securities, commodities, and cryptocurrencies akin to meme coins. Furthermore, the act would require Donald Trump to surrender any profits gained from his meme coin sales.
Though Liccardo plans to introduce his bill on Thursday, it stands little chance of passing in a Congress controlled by Republicans. Despite this, the freshman lawmaker views the proposal as a placeholder for future Democratic leadership and a symbolic stance against perceived corruption under the current administration. This effort arises as Democrats navigate a fractured party landscape during the early stages of the Trump presidency.
Meme coins represent a peculiar, volatile segment of the crypto market, commonly originating as humorous digital tokens devoid of intrinsic value. Their worth can spike if enough individuals express interest in buying. Critics argue these coins resemble Ponzi schemes designed to enrich insiders and unethical public figures. Meanwhile, supporters believe meme coins might signal potential internet-driven innovations within financial transactions.
Deviating from presidential conventions about product endorsements, Trump has shown a robust interest in ventures tied to cryptocurrencies that could enhance his personal wealth. Following its initial release, the Trump meme coin’s value rocketed to nearly $70, only to plummet to about $12. Observers estimate trading fees have generated millions for those associated with the coin’s launch, including Trump-affiliated organizations.
The Trump administration has historically blurred boundaries by endorsing various products well beyond traditional presidential scope, such as branded perfumes and more recently, undertaking ventures linked to digital finance. Last year, Trump and his sons were involved with the launch of a decentralized finance crypto platform, and the president himself backed online retailers selling crypto-themed merchandise.
The Trump family’s recent ethics agreement restricts the president’s day-to-day involvement in external business operations and limits financial disclosures to him. While initially skeptical of cryptocurrencies, Trump last year vowed to establish the U.S. as a global leader in digital assets, receiving substantial backing from the crypto sector disillusioned with the previous administration’s stance.
Similar ventures by the Trump family include a meme coin launched by First Lady Melania Trump that saw a brief surge in value around the inauguration before its steep decline. In a parallel controversy abroad, crypto developer Hayden Davis, linked to the Melania coin, was implicated in a failed cryptocurrency launch leading to legal scrutiny of Argentine President Javier Milei.
Critic Davis has publicly denounced meme coins as a rigged system benefiting a select few at the expense of everyday investors, equating the industry to an “unregulated casino.”
Beyond criminal sanctions, Liccardo’s MEME Act would enable individual investors who incur losses from meme coins endorsed by public figures to pursue legal action. Liccardo stressed this facet of the bill is vital due to what he perceives as a lack of independence within the current Justice Department. “An enforcement mechanism and a private right of action are essential for maintaining honesty and accountability,” he emphasized.
