US House Democrats push for crypto ethics reform with MEME Act

The intersection of politics and cryptocurrency is once again under scrutiny as House Democrats, led by Congressman Sam Liccardo (D-CA), introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act.

The proposed legislation seeks to ban senior US officials and their family members from engaging in the issuance, sponsorship, or endorsement of digital assets, securities, and commodities.

This move comes in direct response to the launch of the $TRUMP meme coin, a cryptocurrency tied to former President Donald Trump, which has faced significant volatility since its debut.

Although the MEME Act is unlikely to pass under the current Republican-led Congress, its introduction signals growing concern over political figures leveraging digital assets for personal financial gain.

If Democrats regain control in the 2026 midterm elections, the bill’s prospects could improve, potentially forcing Trump to return any profits made from the controversial token.

The debate raises broader questions about regulatory oversight and ethical boundaries in the crypto space, particularly as political figures increasingly embrace Web3.

Trump-linked tokens spark concerns

The timing of the $TRUMP and $MELANIA tokens’ launches—just days before the US presidential inauguration—has fueled accusations of financial exploitation.

Source: Coingecko

The $TRUMP coin saw an initial surge to over $74, only to crash 82% from its peak, while the $MELANIA token has plummeted 93% from its all-time high.

Source: Coingecko

Despite Trump’s previous advocacy for a more crypto-friendly regulatory environment, his direct association with these digital assets has drawn criticism.

Investors who suffered heavy losses have taken to social media, questioning whether political figures should have such influence over speculative markets.

The volatility of these tokens has also raised concerns about potential insider trading and foreign financial influence over the executive branch.

This is not the first time the former president has ventured into the Web3 space. Trump previously launched a series of NFTs, a move that mirrored a broader trend of politicians experimenting with blockchain-based assets.

With the MEME Act now on the table, lawmakers are signalling that such activities by public officials may soon face stricter scrutiny.

Crypto bill faces legislative hurdles

While the MEME Act has little chance of passing in the current political climate, its introduction highlights the increasing legislative focus on cryptocurrency ethics.

The bill’s failure would not necessarily mean the issue will fade, as calls for greater transparency and accountability in political finance continue to grow.

Regulating the participation of elected officials in crypto markets could set a precedent for broader industry-wide reforms.

Some analysts argue that, even if the MEME Act does not pass, its proposed restrictions on digital asset endorsements could inspire similar measures in future financial regulation bills.

A complete ban on political involvement in digital currencies is unlikely, but lawmakers may push for disclosure requirements and independent oversight as alternative solutions.

This could help ensure that public officials are held accountable while allowing legitimate crypto industry growth to continue.

Regulation aims to restore trust

The MEME Act underscores a broader debate about the ethical implications of public servants engaging in speculative investments.

Trust in democratic institutions relies on a clear separation between political power and personal financial gain, yet the growing involvement of politicians in crypto-related ventures blurs these lines.

With increasing regulatory efforts in the cryptocurrency space, from Biden’s executive order on digital assets to Europe’s MiCA framework, the MEME Act is part of a global movement towards ensuring that financial markets operate transparently.

Whether the legislation moves forward or not, it has sparked an important conversation about the role of elected officials in emerging financial markets.

Ultimately, the battle over cryptocurrency regulation is far from over.

As digital assets continue to evolve, lawmakers will need to balance market innovation with ethical governance, ensuring that no public figure can exploit their political influence for private financial gain.

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