House Democrats have introduced a new bill led by Rep. Sam Liccardo of California that will effectively ban public officials from making profits out of digital assets, including meme coins.
In a video statement on X Thursday, Liccardo revealed that he will introduce the legislation to the House of Representatives Thursday as part of the efforts “to make corruption criminal again.”
What is the MEME Act?
According to Liccardo, the proposed bill, which will be called the Modern Emoluments and Malfeasance Enforcement (MEME) Act, will reduce the “enormous risk” that comes with being “in the business” of digital tokens.
Liccardo noted that there is a Constitutional clause that prohibits people in public office to receive gifts from foreigners. He noted that issuing a meme coin will be purchased by foreigners who “want to curry favor with you to get a good outcome and in fact, find a way around the emoluments clause.”
He reiterated that the MEME Act will make the acceptance of such “benefits” from foreign investors or entities “criminal.”
Liccardo later said in a statement that the following public officials will be prohibited from issuing, sponsoring, or endorsing “a security, future, commodity, or digital asset”:
- President
- Vice President
- Congress members
- Senior Executive Branch officials
- Spouses of abovementioned officials
- Dependent children of abovementioned officials
Why Is It Important for the American Public?
Aside from explaining the constitutional conflict of interest in public officials issuing meme coins, Liccardo also noted that the bill will make sure there are both criminal and civil penalties for public officials, allowing people to sue for losses incurred in a crypto coin project.
Liccardo explained that being able to sue violating officials is crucial “because 800,000 people bought” the meme coin issued by U.S. President Donald Trump, the Official Trump (TRUMP) token and “almost all” of the investors lost a lot of money in the coin.
Citing The New York Times and The Associated Press, Liccardo said many investors in China made good money through TRUMP, and the president himself also reaped millions in gains from the project, saying it was, in the end “a rug pull.”
The TRUMP token is currently trading at around $11 from an all-time high of $73 in December, while MELANIA has wiped out 93% of its value from its peak price of $13.05.
Liccardo told his colleagues at the House that while scams in the meme coin segment are called rug pulls, they were called “corruption” during his time as a prosecutor.
Is There a Chance the MEME Act Passes?
Liccardo said his bill has “many co-sponsors,” but it is worth noting that even if the legislation passes the House, it will still need to go to the Republican-held Senate, and it will also end up at the president’s desk.
On X, there is already growing support among cryptocurrency users for the proposed bill, with some saying it’s a good move since “memecoins are a cancer to the crypto industry” and they’re offerings the president should be distancing himself from.
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