Memecoin Scandal Sparks Push for Congressional Regulation

The U.S. Congress is considering legislation prohibiting high-ranking government officials from launching, promoting, or profiting from cryptocurrency tokens. This effort follows the recent launch and subsequent collapse of the $TRUMP token, a memecoin linked to former President Donald Trump.

Anny Sam
February 28, 2025
3:23 pm

Anny Sam

Anny is a skilled crypto writer, delivering clear, engaging content that simplifies complex blockchain concepts for a broad audience.

Lawmakers are considering banning officials from issuing digital assets.
The proposal aims to curb political financial exploitation.
The Legislation Responds to Concerns over $TRUMP’s Market Impact.

The U.S. Congress is preparing to discuss a new bill that could prohibit government officials and their families from issuing or endorsing digital assets. The move comes after the launch of the $TRUMP memecoin, which has seen a sharp decline in value, wiping out billions in investor funds.

Democratic Representative Sam Liccardo is hosting the drive in support of the Modern Emoluments and Malfeasance Enforcement (MEME) Act. This act is to prevent elected officials, including the president and vice president, from benefiting from their offices in cryptocurrencies.

Financial Concerns and Ethics Violations

The TRUMP coin, which was launched in January, was in the headlines because it suddenly soared and came crashing down. Opponents accuse both the ex-president and his wife. Melania Trump of making money off the venture while leaving the investors in the red. Yet another token tied to Melania was launched just before the TRUMP coin.

Liccardo contends that these online resources have implications in respect to insider trading and foreign interference. He holds that office should not be used to accumulate money, and officials should not possess an ability to use political power to manipulate market prices.

Challenges and Political Divisions in Memecoin

Despite this call to change, the MEME Act is not gaining momentum in this Republican-held legislature. Though supported by several Democratic members in Congress, this is not something that is anticipated to get passed in this political climate.

Liccardo is committed to passing the bill and developing support. He is calling for tough penalties in both criminal and civil ways. The Legislation would have a retroactive clause to ensure officials who profited through earlier digital assets can yet be held accountable.

Though arguments continue to surround this issue, the future of the MEME Act is not yet clear. Nonetheless, the reaction to both $TRUMP and related coins has generated debate about where politics and cryptocurrencies intersect.