House Democrats are moving to crack down on politicians profiting from memecoins, with a new bill that could ban public officials from issuing, sponsoring, or endorsing digital assets. According to ABC News, California Representative Sam Liccardo is leading the charge with the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which he plans to introduce on Feb. 27.
Liccardo didn’t hold back, stating, “Let’s make corruption criminal again,” arguing that elected officials should not use their positions for personal financial gain. The bill has a dozen Democratic sponsors and aims to build bipartisan support.
Trump Memecoins Face Legal Scrutiny
The bill directly targets memecoins like Trump (TRUMP) and Melania (MELANIA), both of which were launched days before Donald Trump’s return to the White House. Since their debut in January, TRUMP has crashed 82% from its peak, while MELANIA has plummeted 93%, according to Cointelegraph.
Critics argue these tokens financially exploit the public. This has also raised concerns about insider trading and foreign influence. While the SEC’s Hester Peirce has stated that most memecoins don’t fall under its jurisdiction, some lawmakers are calling for more direct regulation from Congress or the CFTC.
Memecoin Mania Sparks Regulatory Push
Liccardo’s proposal isn’t the only memecoin-related legislation on the table. On Feb. 20, Democratic Senator Cortez Masto introduced an amendment aiming to ban federal officials from profiting from memecoins linked to Chinese investments.
As memecoins continue their dramatic downfall, some analysts believe the hype is officially over. According to The Financial Times, Bitwise CIO Matt Hougan noted, “What crypto is digesting right now is the end of the memecoin boom.”
Investors should track how these developments impact well-established cryptos on the TipRanks Crypto Center.
