Key takeout
- The new bill aims to prevent top US officials from profiting from personal meme coins due to concerns over $Trump assets.
- The law enforces penalties and is part of efforts to tackle financial exploitation by current and former office holders.
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Like the Trump Meme Token, Rep. Sam Ricardo has introduced the modern Emorimen and Misperous Enforcement (MEME) Act, which prohibits the president, vice president, congressional members, senior officials and their families from issuing, sponsoring or approving digital assets, securities and products.
The proposed law comes amidst the potential conflicts of interest and continued concerns regarding exploitation related to staff who are promoting or benefiting from Memecoin. House Democrats argue that authorities should not use their positions for personal economic benefits through such ventures.
Just before the inauguration, Trump surprised the market with the launch of his own Trump coin. The token reached a market valuation of $13 billion over a day, but earned more profit the next day, but quickly fell shortly thereafter.
At the time of press, Trump fell 82% at about $12 per Coingecko. The sharp decline has resulted in many investors losing large amounts.
Concerns have been raised about transparency, insider trading and foreign influence. Even some Trump-backed cryptophiles have found launches unethical.
“Let's make corruption a crime again,” Ricardo said. “Our civil servants belong to the public, not the office holder, and should not exploit political authority for financial gain. The Trump issue of meme coins financially exploiting the public for personal gain, elevating the illusion of insider trading and foreign influence on the administrative sector.”
The bill imposes criminal and civil penalties and includes retroactive elements that target assets issued prior to the bill's enactment. It also covers other financial assets, including Truth Social Stock.
In other words, the bill would force the president to return profits made from meme coins. Additionally, if an investor loses money from a civil servant-supported meme coin, he can sue the civil servant.
A slim chance
Given the current political landscape of the House of Representatives, democratically supported laws are unlikely to pass.
Liccardo's proposed law has 12 democratic co-conspirators. But it is rare to avoid the difficult fights in Republican-controlled homes.
The new student lawmakers acknowledge this. His focus is building legal support, hoping that once Democrats regain their majority, it will pass.
Last month, Sen. Elizabeth Warren called on financial regulators and the Office of Government Ethics to look into Trump's memecoin for potential violations of ethical rules and regulations.
Warren expressed concern that Trump and his wife have used the presidency to generate substantial economic benefits, and reportedly surged their net worth to $58 billion. She also criticized the conditions of the token that prevented consumers from pursuing fraud claims.
Warren warned that anyone, including leaders of hostile countries, could secretly buy these coins and create an untraceable impact channel for the president.
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