Targeting Trump’s $TRUMP memecoin, House Democrats have unveiled a bill to restrict high-level U.S. officials from profiting in the digital asset space.
Rep. Sam Liccardo plans to unveil the MEME Act on Thursday. According to a memo, the act would bar federal officials and their families from issuing, endorsing, or promoting cryptocurrencies and financial assets.
Shortly before taking office, Trump launched $TRUMP in January alongside a Melania Trump-branded coin.
Investors suffered substantial losses as the cryptocurrency, which had risen quickly, later plummeted in value.
Liccardo alleges that the Trumps and initial investors secured major profits, while retail investors took a financial hit.
“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,” prosecutors said
If enacted, the MEME Act would regulate the president, vice president, legislators, senior executive officials, and their family members.
Those who violate the act would face criminal and civil sanctions, and the law would reclaim gains made before its enforcement.
Given the Republican-controlled House and Senate, lawmakers are not expected to pass Liccardo’s legislation in the near future. However, the freshman Democrat insists that the president and first lady benefited significantly from their meme coins and continues working to gather support for when Democrats reclaim the majority.
While Trump previously voiced his desire to make the U.S. the “crypto capital of the planet,” he has not issued a statement regarding the proposed law.
The MEME Act emerges as U.S. lawmakers face heightened criticism over potential insider trading.
While laws require federal officials to disclose their finances, critics have repeatedly accused Congress members of using insider knowledge to benefit from stock trading.
To combat insider trading among lawmakers and officials, legislators introduced the STOCK Act in 2012. Yet, due to weak enforcement, many in Congress continue engaging in stock trading within industries they help regulate.
Evidence suggests that some lawmakers executed well-timed trades before major economic disruptions, like the COVID-19 pandemic and financial crises.
A 2022 investigation by ‘The New York Times’ revealed that nearly 100 congressional representatives or their family members traded stocks tied to industries under their legislative jurisdiction.
