House Democrats are targeting President Donald Trump’s $TRUMP meme coin with new legislation aimed at preventing top U.S. officials from profiting from digital assets.
Rep. Sam Liccardo plans to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act on Thursday, barring federal officials and their families from issuing, endorsing, or promoting cryptocurrencies and other financial assets, according to ABC.
Trump launched $TRUMP in January, just days before taking office, alongside a similar Melania Trump-branded coin. The cryptocurrency quickly surged but later collapsed in value, leaving investors with heavy losses. Liccardo claims the Trumps and early backers made significant profits while retail investors suffered.
“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, according to ABC.
The MEME Act would apply to the president, vice president, members of Congress, senior executive officials, and their families.
It would also impose criminal and civil penalties for violations and retroactively target profits made before its enactment.
While the legislation is unlikely to pass under a Republican-controlled Congress, Liccardo says he is building support for future action.
Trump, who previously stated his ambition to make the U.S. the “crypto capital of the planet,” has not commented on the proposed bill.
Insider trading in Congress
The MEME Act comes amid growing scrutiny over insider trading among U.S. lawmakers. While federal officials are subject to financial disclosure laws, members of Congress have repeatedly been accused of using privileged information to profit from stock trades.
In 2012, the STOCK Act (Stop Trading on Congressional Knowledge) was passed to curb insider trading by lawmakers and government officials. Enforcement of this act has been weak, and many members of Congress continue to trade stocks in industries they regulate.
Reports have highlighted instances where lawmakers made well-timed trades before major market-moving events, such as the COVID-19 pandemic and banking crises.
A 2022 investigation by The New York Times found that nearly 100 members of Congress or their immediate families had traded stocks in industries under their legislative oversight.
