A move is being made on Capitol Hill as House Democrats reveal a new legislative push aimed at stopping the rising tide of "presidential memecoins." Representative Sam Liccardo of California is the one introducing the Modern Emoluments and Malfeasance Enforcement (MEME) Act,"
a bill designed to prevent public officials from profiting off digital assets like the controversial TRUMP token.
The proposed legislation, revealed on Tuesday, would cast a wide net, prohibiting a range of high-ranking officials, including the president, vice president, members of Congress, and their immediate families, from issuing, endorsing, or sponsoring any securities, commodities, or digital assets.
"Public office is a public trust," Liccardo stated, emphasizing the need to safeguard against potential corruption. "We must ensure that those in power cannot leverage their positions for personal financial gain."
The move comes after growing concerns over the popularity of memecoins, particularly those linked to prominent political figures. The TRUMP token, launched by former President Donald Trump just days before leaving office, and a similar coin issued by his wife, Melania Trump, have drawn strong criticism.
Liccardo argues that these ventures "financially exploit the public" and raise serious questions about insider trading and foreign influence. The MEME Act, which has garnered support from a dozen Democratic sponsors, seeks to address the regulatory vacuum surrounding this emerging market.
The bill's introduction marks a significant step in the ongoing debate about the role of cryptocurrencies in politics. It's not the only legislative initiative targeting memecoins. Senator Cortez Masto recently proposed an amendment to a Senate resolution that would specifically prohibit federal employees from profiting from meme coins with ties to the Chinese Communist Party.
Industry analysts suggest that the recent volatility in the cryptocurrency market may be linked to the "memecoin boom." "What we're seeing is the market adjusting to the end of that speculative frenzy," noted Matt Hougan, Chief Investment Officer at Bitwise, in an interview with the Financial Times.
As the MEME Act moves forward, it faces the challenge of securing bipartisan support in a divided Congress. The outcome of this legislative battle could have far-reaching implications for the future of digital assets and their intersection with politics.
Detailed information gotten from cointelegraph
