Democrat Sam Liccardo Proposes Bill to Block Officials from Launching Meme Coins
Democrat Sam Liccardo from Silicon Valley is proposing the Modern Emoluments and Malfeasance Enforcement (MEME) Act to prohibit government officials, including the president and Congress members, from launching or endorsing cryptocurrencies like meme coins. This legislation follows US President Donald Trump's recent release of the TRUMP meme coin, which faced quick price fluctuations.
- The MEME Act mandates Trump return profits from his meme coin.
- It allows investors who suffered losses from such coins to sue for recovery.
- The bill aims to address ethical concerns about politicians in crypto.
- Liccardo notes existing laws do not sufficiently manage these risks.
- The proposal faces challenges in a Republican-controlled Congress but is seen as a symbolic measure against corruption.
Hayden Davis, involved with Trump’s meme coin, has had past controversies linked to corrupt projects. He criticized the meme coin industry as an unregulated casino that disadvantages retail investors.
Additionally, Democratic Senator Catherine Cortez Masto proposed an amendment to prevent federal officials from profiting from digital tokens tied to the Chinese Communist Party.
Hester Peirce from the SEC stated that most meme coins fall outside their regulatory scope, suggesting oversight should come from lawmakers or agencies like the CFTC.