TRUMP Meme Coin Under Fire as Democratic Lawmakers Push to Ban Presidential Crypto Coins

Democratic legislators are targeting the controversial TRUMP meme coin, launched by President Donald Trump, with a bill to prevent politicians from launching crypto coins. This move came amid substantial financial losses investors have encountered from exposures to the TRUMP meme coin. Last month, the TRUMP meme coin and a similar coin by Melania Trump quickly gained attention. They reached historic milestones with multi-billion-dollar valuations just hours after launching. At one point, TRUMP ranked as the second-largest meme coin, trailing only Dogecoin. However, as the hype subsided, the price continued to plummet, with TRUMP falling by 82% from its all-time high. This downturn resulted in significant financial losses for many investors. As The Crypto Basic reported, the overwhelming majority of TRUMP buyers lost money. The decline has caught the attention of lawmakers, including California Democrat Rep. Sam Liccardo. Liccardo is now leading a new effort to curb such financial ventures among U.S. officials. The MEME Act Specifically, Rep. Liccardo is introducing the MEME Act, officially the Modern Emoluments and Malfeasance Enforcement (MEME) Act. This bill would forbid the president and vice president from endorsing, issuing, or sponsoring any financial asset, including meme coins. It will also prohibit members of Congress, senior executive branch officials, and their families from similar activities. Liccardo argues that the Trump family’s involvement in launching these cryptocurrencies amounted to financial exploitation. He stressed that they capitalized on their political influence for personal gain. The legislation aims to prevent federal officials from profiting off digital assets, such as stocks or cryptocurrencies, as it could create conflicts of interest or invite corruption. Moreover, Liccardo has expressed concerns about the potential for insider trading and foreign influence over U.S. politics, especially given the global financial reach of such coins. Challenges Ahead for the MEME Act Despite Liccardo's strong stance, the MEME Act faces significant obstacles in the current political landscape. With Republicans holding majorities in both the House and Senate, the bill is unlikely to gain traction in the near term. However, Liccardo remains committed to pushing the bill forward, hoping to gain wider support under a future Democratic majority. Liccardo’s proposal also includes retroactive provisions, meaning it would apply to coins like TRUMP that were issued before the bill's potential enactment.  Violators of the proposed law could face criminal and civil penalties to deter federal officials from profiting off any financial assets linked to their political roles.