Congress Democrats Target Trump’s Meme Coin

Congress Democrats have introduced a bill aimed at banning top federal officials and their families from issuing or promoting meme coins and other financial instruments, citing ethical concerns regarding Trump’s meme coin.

Rep. Sam Liccardo’s Initiative

California Democrat Rep. Sam Liccardo is leading the effort against Trump’s meme coin, emphasizing that although targeting the president’s crypto token was not his initial goal, a response was needed after its rapid devaluation.

Liccardo sees Trump’s decision to launch the meme coin as unethical, stating it exploits his authority for personal gain, leading to the introduction of the MEME Act (Modern Emoluments and Malfeasance Enforcement Act).

The bill, backed by about a dozen Democratic cosponsors, targets the president, vice president, Congress members, senior officials, and their families. Violators could face fines and up to five years in prison, with Trump expected to forfeit earnings from the token’s sales.

Proposed Legislation Details

The MEME Act seeks to prevent federal officials and their families from promoting crypto assets or securities. It introduces penalties for financial misconduct and allows private investors to sue if they incur losses from these assets promoted by state officials. Liccardo argues for the necessity of enforcement mechanisms and private right of action to promote honesty.

While the bill’s passage in the GOP-controlled Congress appears unlikely, Liccardo believes it could serve as a foundation for Democrats to combat corruption if they regain control.

Background on Trump’s Crypto Ventures

Meme coins are widely regarded as high-risk investments, often compared to Ponzi schemes benefiting insiders. Trump’s token initially surged in price to nearly $70 before falling to approximately $12, raising concerns about its legitimacy.

Trump and his family have also engaged in various crypto projects, with the First Lady’s MELANIA token experiencing a similar rise and fall in value. Despite engaging in these ventures, Trump has distanced himself through an ethics agreement prohibiting outside business dealings.

Challenges Ahead for the MEME Act

Though the MEME Act has prominent supporters like Reps. Adam Schiff, Jamie Raskin, and Alexandria Ocasio-Cortez, its prospects for enactment in a GOP-controlled legislature remain slim. Liccardo regards the legislation as a symbolic measure against corruption while signaling Democrats’ stance on financial ethics.

The bill’s broad language targets all securities and digital assets, ensuring greater scrutiny of financial conduct. However, mixed reactions among industry players highlight the challenges ahead, reflecting broader concerns about financial conflicts within the Democratic party.

Public sentiment indicates support for limitations on trading activities by public officials, further complicating the discussions surrounding the bill.