Regulators and authorities have long considered memecoins a wild and unpredictable aspect of the crypto market.
Now, lawmakers are set to introduce regulatory measures to curb this highly volatile market. Let’s discover more about this important news for presidential memecoins.
Congress Targets Memecoins with the MEME Act
The latest effort, a proposed bill, the Modern Emoluments and Malfeasance Enforcement (MEME) Act, seeks to prevent public officials from issuing assets like memecoins or profiting from digital assets.
The proposed bill was likely inspired by Donald Trump’s recent success in the memecoin market. Trump allegedly raked in huge profits from the sale of his $TRUMP coins. Several US lawmakers saw this as a conflict of interest, considering the uncontrolled nature of memecoins.
Today, I introduced the MEME Act, which prohibits top federal officials from issuing, sponsoring, or promoting a security, commodity, or digital asset with criminal and civil penalties. pic.twitter.com/NbjmcwoEB5
— Rep. Sam Liccardo (@RepLiccardo) February 27, 2025
Cracking Down on Political Crypto
House Democrats, led by Representative Sam Liccardo, are pushing for tighter controls. The MEME Act would bar presidents, vice presidents, Congress members, senior officials, and even their families from launching, endorsing, or profiting from digital assets. The bill, backed by a dozen Democratic sponsors, is seeking bipartisan support.
Liccardo argues that politicians using their influence for personal financial gain is a clear conflict of interest. “Let’s make corruption criminal again,” he stated, emphasizing that public office should not be a gateway to personal wealth.
Let’s make corruption criminal again. #SipWithSam #MEMEAct pic.twitter.com/J4sRcMdXv0
— Rep. Sam Liccardo (@RepLiccardo) February 27, 2025
Some supporters of this bill believe Trump’s involvement in the memecoin market could potentially trigger a wave of insider trading as well as open concerns for foreign influence.
The call for clearer regulations was also intensified after many investors who purchased both $TRUMP and $MELANIA tokens suffered huge losses. Both meme coins are over 80% down from their peak.
Interestingly, the MEME Act is not the only bill targeted at memecoins. Another proposal by Senator Cortez Masto seeks to ban federal employees from profiting from meme coins linked to Chinese investments. Lawmakers are starting to take meme coins more seriously. Both bills signal a possible end to the era of unregulated meme coins.
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