**Democratic Lawmakers Set Their Sights on the TRUMP Meme Coin Amid Investor Losses**
Democratic lawmakers are taking a closer look at the controversial TRUMP meme coin, which was launched by former President Donald Trump, by proposing a bill aimed at preventing politicians from creating their own cryptocurrency. This initiative comes in response to the significant financial losses that many investors have faced due to their investments in the TRUMP meme coin. Just last month, both the TRUMP meme coin and a similar offering from Melania Trump captured public attention, achieving remarkable valuations in the billions within hours of their launch. At one point, TRUMP even ranked as the second-largest meme coin, just behind Dogecoin. However, as the initial excitement faded, the coin’s value plummeted, dropping by 82% from its peak. This decline has led to considerable financial setbacks for numerous investors, with reports indicating that a vast majority of TRUMP buyers ended up losing money.
The downturn has not gone unnoticed by lawmakers, including California Democrat Rep. Sam Liccardo, who is spearheading a new initiative to regulate such financial activities among U.S. officials.
**The MEME Act**
Rep. Liccardo is introducing the MEME Act, which stands for the Modern Emoluments and Malfeasance Enforcement Act. This proposed legislation would prohibit the president and vice president from endorsing, issuing, or sponsoring any financial assets, including meme coins. Additionally, it would extend these restrictions to members of Congress, senior executive branch officials, and their families. Liccardo contends that the Trump family’s involvement in launching these cryptocurrencies represents a form of financial exploitation, arguing that they leveraged their political influence for personal gain. The goal of this legislation is to prevent federal officials from profiting from digital assets, such as stocks or cryptocurrencies, which could lead to conflicts of interest or even corruption. Liccardo has also raised concerns about the risks of insider trading and foreign influence in U.S. politics, particularly given the global reach of these coins.
**Challenges Ahead for the MEME Act**
Despite Liccardo’s strong advocacy for the MEME Act, the bill faces considerable hurdles in the current political environment. With Republicans holding majorities in both the House and Senate, it is unlikely to gain momentum in the immediate future. Nevertheless, Liccardo remains determined to advance the bill, hoping to garner broader support if a Democratic majority emerges in the future. His proposal also includes retroactive provisions, meaning it would apply to coins like TRUMP that were issued prior to the bill’s potential enactment. Those who violate the proposed law could face both criminal and civil penalties, serving as a deterrent against federal officials profiting from any financial assets tied to their political roles.
