The MEME Act faces strong opposition in a GOP-controlled Congress, making its passage unlikely.
Congress Democrats have taken a hit at Trump’s meme coin by introducing a bill in the House to ban top federal officials and their families from issuing or promoting meme coins and other financial instruments, citing ethical concerns.
California Democrat Rep. Sam Liccardo is leading the push against Trump’s meme coin, though he has insistently argued that taking aim at the president’s crypto token was not his original intention when he first ran for office.
He claimed, however, that Trump’s move to release a new meme coin needed some kind of response, especially since the token’s price quickly plummeted, leaving some investors with losses.
Liccardo believes President Trump’s decision to launch a meme coin was unethical and an abuse of his authority
Liccardo, also a former criminal prosecutor, argued that the nation should reinstate stricter anti-corruption laws, targeting Trump’s meme çoin. According to him, Trump exploited his authority, office, and the people for his personal gain, calling the president’s actions “unethical.”
He added that Trump’s token raised concerns about transparency, insider trading, and improper foreign influence, saying that even some of Trump’s supporters disapproved of the meme coin launch. Thus, he introduced legislation against the token on Thursday, the Modern Emoluments and Malfeasance Enforcement, or MEME Act.
Liccardo even stated he had about a dozen Democratic cosponsors backing his legislation.
The bill should apply to the president, vice president, Congress members, senior executive officials, and their immediate families. Violators could face fines and up to five years in prison.
The bill’s draft so far dictates that Trump will have to give up his earnings from the token’s sale. Moreover, the legislation will prevent the president, any of his family members or members of Congress from issuing or promoting securities and crypto assets like meme coins.
The legislation would also introduce criminal and civil penalties and bans on some financial assets. Additionally, private investors who lose their funds on meme coins promoted by state officials will be permitted to sue.
Liccardo even commented, “You need to have some enforcement mechanism and a private right of action helps to keep everybody honest.”
However, the bill may fail to pass in the now Republican-controlled Congress, but he believes that the legislation will lay the groundwork for Democrats if they regain power or at least show their stance against Trump’s corruption.
Trump and his family have been actively involved in several crypto projects
Meme coins have long been considered risky and speculative assets, with most critics comparing them to Ponzi schemes that only profit insiders and unethical celebrities.
When Trump first released his token, its price quickly surged to almost $70 before dropping to roughly $12. Nevertheless, analysts believe that the token generated millions of dollars for the launching entities before its immense price drop from its trading fees.
The First Lady’s MELANIA token also saw a trajectory similar to that of Trump. It surged explosively after its launch but has since fallen from its peak days, trading at only $0.8522. Not to mention, one of the developers involved in the MELANIA token launch was found to be tangled with the LIBRA token scandal, for which Argentine President Javier Milei is still being investigated.
In addition to his and Melania’s token releases, Trump and his sons launched a decentralized crypto platform in 2024 and even supported online stores selling crypto-themed sneakers.
However, the president has tried to distance himself from his family’s crypto projects and overall businesses by signing an ethics agreement that will hinder him from making outside business deals.
Liccardo pushes MEME Act to curb corruption, but faces political and industry resistance
The MEME Act has received backing from Reps. Adam Schiff (D-Calif.), Jamie Raskin (D-Md.), and Alexandria Ocasio-Cortez (D-N.Y.). But its passage in the GOP-controlled Congress is highly unlikely. Liccardo said the bill is partly a symbolic step against corruption and a basis for action if Democrats regain state legislature control.
Beyond meme coins, the legislation’s broad language captures all securities and digital assets, designed to harden loopholes for indirect profits. It also requires disclosures of foreign cryptocurrency ties, but the law presents challenges for enforcement. Mixed reactions from industry: Some crypto advocates took to social media to criticize Trump’s action as a “stunt,” while others characterized the bill as politically unviable.
The proposal showcases growing scrutiny of officials’ financial conduct in financial markets. The freshman lawmaker representing Silicon Valley’s 16th District since January 2025, has positioned himself as an advocate for ethical governance with the MEME Act. Yet his party faces a great deal of scrutiny over inconsistencies in addressing financial conflicts. While a few Democrats, including progressives like Rep. Alexandria Ocasio-Cortez (AOC), support banning congressional stock trading, establishment figures like former Speaker Nancy Pelosi have resisted such reforms.
Pelosi’s husband, Paul Pelosi, faced criticism for trades made during the Covid-19 pandemic, including a $5 million windfall trading options in Alphabet shares in advance of a hearing on tech that she oversaw. Pelosi defended lawmakers’ right to trade in the markets, saying that some proposals were “anti-free market.” Public polls show that Americans support the limitations on what could be traded. Liccardo’s concern with meme coin regulation also underscores Democrats’ larger challenge of balancing their progressive reform aspirations with powerful financial interests.
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