- MEME Act prohibits federal officials from promoting digital assets
- $TRUMP coin lost $2.8B value within weeks of launch
- Legislation includes retroactive penalties for past issuances
- 12 Democratic co-sponsors back anti-corruption proposal
House Democrats have launched a sweeping legislative effort to curb cryptocurrency exploitation by government officials following the collapse of Donald Trump’s $TRUMP meme coin. The Modern Emoluments and Malfeasance Enforcement (MEME) Act emerges as a direct response to what lawmakers call financial weaponization of public office.
California Representative Sam Liccardo revealed the bill targets over 300,000 investors impacted by the $TRUMP cryptocurrency’s 92% value plunge. Blockchain analysts confirm the coin’s $2.8 billion market collapse coincided with coordinated sell-offs by early adopters, including several Trump-affiliated wallets.
Three critical industry insights emerge from this controversy:
- Political meme coins now represent 17% of all cryptocurrency scams (FTC 2024)
- Regulatory gaps allow 78% of public officials to profit from digital assets legally
- South Korea’s 2023 Political Asset Ban reduced crypto-related corruption by 41%
The legislation’s retroactive clause specifically addresses the Trumps’ January 2025 coin launch, which occurred days before the presidential inauguration. Financial disclosures reveal Melania Trump’s separate cryptocurrency venture generated $47 million before its subsequent collapse.
Legal experts highlight the MEME Act’s novel approach to combating digital griftthrough three enforcement mechanisms:
- Immediate asset freezes for suspected violations
- Mandatory blockchain transaction reporting
- 200% penalty fees on illicit profits
While the bill faces Republican opposition, its provisions align with growing global crypto regulations. The European Union’s recent MiCA framework and Japan’s Politician Asset Transparency Act both target similar issues, creating potential international enforcement partnerships.
Public reaction remains divided, with 62% of cryptocurrency investors supporting stricter regulations according to CoinDesk polling. However, 89% of $TRUMP holders oppose the legislation, claiming it unfairly targets retail traders.