Democrat Party Of U.S to Introduce Bill Banning Officials from Issuing Memecoins
The legislation bill would block the president, members of Congress, and other senior officials, as well as their spouses and children, from issuing or sponsoring securities
Representative Sam Liccardo, a California Democrat and freshman congressman representing Silicon Valley, expressed surprise at his first sponsored legislation targeting President Trump’s memecoin.
He stated that this wasn’t his initial plan upon entering office. However, he felt compelled to respond to the President’s memecoin launch shortly before his inauguration. While early investors profited, the subsequent price crash resulted in significant losses for others, alienating even pro-Trump crypto enthusiasts.
Liccardo highlighted the inherent unethical nature of the situation, questioning the lack of preventative measures. He cited concerns about transparency, insider trading, and potential foreign influence.
Sam Liccardo Bill Proposal
The proposed legislation, the Modern Emoluments, and Malfeasance Enforcement (MEME) Act, aims to prohibit the President, members of Congress, senior officials, and their immediate family from issuing or sponsoring securities, commodities, and cryptocurrencies, including memecoins. It further mandates the return of any profits Trump earned from his meme coin sales.
Despite its low likelihood of passage in the Republican-controlled Congress, Liccardo views the bill as a crucial symbolic action against perceived corruption, serving as a template for future Democratic administrations. This initiative comes amidst the Democratic Party’s struggle to establish itself during the early stages of the Trump presidency.
Trump’s pursuit of digital assets represents a significant departure from traditional presidential norms. Memecoins, a volatile sector of the crypto industry, often originate as jokes but can experience dramatic price increases based on speculative buying.
Moreover, critics label them Ponzi schemes benefiting insiders and celebrities, while proponents see them as potential indicators of internet-driven financial innovation.
Trump’s Crypto Endorsement
Trump’s history includes endorsements of various products, but his engagement with cryptocurrency projects, potentially lucrative for him, stands out. His memecoin initially reached nearly $70 before dropping to approximately $12.
Analysts estimate that trading fees generated tens of millions of dollars for entities involved in the coin’s launch, including a Trump-owned company.
Last year, the Trump family also participated in launching a decentralized finance cryptocurrency platform and endorsed online stores selling crypto-themed merchandise.
A recent ethics agreement restricts Trump’s daily involvement in outside business deals and limits his access to financial information. Having once been skeptical, Trump shifted his stance last year, promising to establish the U.S. as the global hub for digital assets.
