Lawmakers Move to Ban Politician-Backed Cryptocurrencies
A new legislative proposal is targeting the controversial $TRUMP meme coin, as Democratic lawmakers push for a ban on political cryptocurrency ventures. The Modern Emoluments and Malfeasance Enforcement (MEME) Act, introduced by Rep. Sam Liccardo (D-CA), seeks to prohibit sitting presidents, vice presidents, members of Congress, and senior government officials from launching or endorsing digital assets.
The push comes after the $TRUMP coin, launched by former President Donald Trump in January, saw an 82% decline from its peak. Initial investors enjoyed massive gains, but as the hype faded, the market crashed, leading to substantial financial losses.
The Rise and Fall of Trump’s Meme Coin
Trump introduced the $TRUMP coin just days before taking office, with former First Lady Melania Trump launching a similar cryptocurrency a week earlier. The tokens surged in value, reaching multi-billion-dollar valuations within hours, briefly positioning $TRUMP as the second-largest meme coin behind Dogecoin.
However, as with many meme-driven digital assets, early investors cashed out, and prices nosedived. Reports suggest that hundreds of thousands of investors suffered losses, raising concerns about the ethical implications of political figures profiting from cryptocurrency ventures.
They are coming after Trump's Meme Coins https://t.co/NeCgLlsWk1
— DNIR Flash News**Original:* (@cnir_bayarea) February 27, 2025
Congress Questions Ethics and Insider Trading Risks
Liccardo has been vocal in his criticism, arguing that politicians should not use public office for personal financial gain. He described the $TRUMP coin as a “clear exploitation of political influence for profit” and warned of potential insider trading risks and foreign influence over government officials.
“Let’s make corruption criminal again,” Liccardo said in a statement. “Public offices belong to the people, not the politicians occupying them.”
Will the MEME Act Pass?
While the MEME Act proposes criminal and civil penalties for officials who profit from political cryptocurrencies, it faces an uphill battle. With Republicans holding majorities in both the House and Senate, the bill is unlikely to gain immediate traction. However, Liccardo hopes to build bipartisan support and push for passage under a future Democratic majority.
The legislation also includes retroactive provisions, meaning it could impact $TRUMP and other previously launched political crypto assets. If passed, it would set a precedent for regulating digital assets linked to public officials.
What’s Next for Political Crypto?
The debate over political cryptocurrency is just beginning. Supporters argue that meme coins provide a new form of digital engagement, while critics warn of corruption, fraud, and market manipulation. As lawmakers continue to scrutinize the space, the future of politician-backed digital assets remains uncertain.
What do you think? Should politicians be allowed to launch their own cryptocurrencies, or does it pose too many risks? Leave your thoughts in the comments below!
