Amid worries about the token consequences, a House Democrat introduces new measures to address financial irregularities
Rep. Sam Liccardo is proposing the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which would prohibit the issuance, sponsorship, or endorsement of digital assets, securities, and commodities, such as the TRUMP meme token, by the president, vice president, members of Congress, senior officials, and their families.
The proposed law is in response to persistent worries about possible abuse and conflicts of interest involving authorities who advertise or benefit from meme coins. House Democrats contend that officials shouldn’t engage in such activities to profit personally from their posts.
Trump shocked the market with the introduction of his own TRUMP currency just before his inauguration. In less than a day, the token’s market value reached $13 billion, and it continued to rise over the next several days until plummeting.
According to CoinGecko, TRUMP was down 82% from its high at roughly $12 at the time of writing. Many investors suffered enormous losses as a result of the steep fall.
The measure would target assets issued prior to its implementation and contain a retroactive aspect that would incur criminal and civil fines. Other financial assets, such as Truth Social stock, would also be covered.
Stated differently, the measure would compel the president to reimburse any earnings from the meme currency. In addition, investors who lose money on a meme currency sponsored by public authorities might be sued.
Legislation presented by Democrats has virtually little chance of passing the House of Representatives given the current political climate. Despite having twelve Democratic cosponsors, Liccardo’s proposed measure is unlikely to succeed in the Republican-controlled House.
That’s something the new legislator admits. His goal is to increase support for the bill in the hopes that, should Democrats win a majority, it would pass. Sen. Elizabeth Warren demanded last month that the federal ethics office and banking authorities look into Trump’s meme coins for possible ethical transgressions.
With Trump and his wife’s net worth apparently soaring to $58 billion, Warren voiced concerns about them abusing their position to make significant financial advantages. She also took issue with the tokens’ conditions, which forbid customers from filing fraud claims.
Warren cautioned that these coins may be secretly purchased by anyone, even the heads of adversarial countries, opening up an untraceable avenue of influence over the president.
Also Read: K33 Research notes Trump memecoin’s ‘horrendous’ tokenomics but no supply issues
