"Trump's Meme Coin Sparks US Lawmakers' Crypto Crackdown"
1min read US House Democrats have proposed the Modern Emoluments and Malfeasance Enforcement (MEME) Act, a bill aimed at banning senior US officials and their family members from engaging in the issuance, sponsorship, or endorsement of digital assets, securities, and commodities. The legislation, introduced by Congressman Sam Liccardo (D-CA), seeks to address growing concerns over political figures leveraging digital assets for personal financial gain.
The introduction of the MEME Act comes in response to the launch of the $TRUMP meme coin, a cryptocurrency tied to former President Donald Trump. The token has faced significant volatility since its debut, with an initial surge to over $74 followed by an 82% crash from its peak. The $MELANIA token, launched around the same time, has plummeted 93% from its all-time high. The timing of these launches, just days before the US presidential inauguration, has fueled accusations of financial exploitation.
The MEME Act is unlikely to pass under the current Republican-led Congress, but its introduction signals growing concern over political figures' involvement in the crypto space. If Democrats regain control in the 2026 midterm elections, the bill's prospects could improve, potentially forcing Trump to return any profits made from the controversial token.
The debate surrounding the MEME Act raises broader questions about regulatory oversight and ethical boundaries in the crypto space, particularly as political figures increasingly embrace Web3. Despite Trump's previous advocacy for a more crypto-friendly regulatory environment, his direct association with these digital assets has drawn criticism. Investors who suffered heavy losses have questioned whether political figures should have such influence over speculative markets, and the volatility of these tokens has raised concerns about potential insider trading and foreign financial influence over the executive branch.
While the MEME Act faces legislative hurdles in the current political climate, its introduction highlights the increasing legislative focus on cryptocurrency ethics. Even if the bill does not pass, its proposed restrictions on digital asset endorsements could inspire similar measures in future financial regulation bills. A complete ban on political involvement in digital currencies is unlikely, but lawmakers may push for disclosure requirements and independent oversight as alternative solutions to ensure that public officials are held accountable while allowing legitimate crypto industry growth to continue.
The MEME Act underscores a broader debate about the ethical implications of public servants engaging in speculative investments. Trust in democratic institutions relies on a clear separation between political 
