YEREVAN (CoinChapter.com) — Congressman Sam Liccardo introduced the MEME Act, a bill designed to ban political meme coins like the TRUMP token and impose penalties on officials launching or endorsing them. The proposal prohibits U.S. presidents, members of Congress, senior officials, and their families from creating or promoting cryptocurrencies, commodities, or securities for personal or political gain. Violators could face civil and criminal penalties.
The bill would also require Donald Trump to return all profits from the TRUMP token launch. Liccardo secured 12 Democratic co-sponsors, but the bill lacks bipartisan support. With Republicans largely supporting crypto, the MEME Act faces challenges in passing.
Political Meme Coins Raise Concerns in Crypto Industry
The launch of the TRUMP token brought attention to crypto scams and political corruption. Reports show that nearly 50% of TRUMP token investors were first-time crypto users, making them vulnerable to fraud. Within days of its launch, scammers stole $857 million, exploiting the hype around the project.
Liccardo addressed these concerns in an interview:
“That wasn’t my plan when I ran for office, I can assure you. [Trump’s] behavior is so self-evidently unethical that it raises the question why isn’t there a clear enough prohibition [on political meme coins]. You need to have some enforcement mechanism and a private right of action helps to keep everybody honest.”
The MEME Act reflects growing scrutiny over the use of cryptocurrency in politics. It seeks to prevent elected officials from using crypto assets for financial gain.
Crypto Scams and Political Tokens Under Scrutiny
The rise of political meme coins has drawn criticism from industry figures, including Ethereum co-founder Vitalik Buterin. Concerns over crypto scams, fraud, and misuse of digital assets in politics continue to grow. Some foreign governments have explored the possibility of launching political meme coins for financial or propaganda purposes.
The MEME Act attempts to set legal boundaries around political crypto projects. Some in the crypto industry argue that these tokens enable money laundering and fraud, while others see them as part of digital asset innovation.
MEME Act Faces Uncertain Future in Congress
The Republican Party remains broadly pro-crypto, making it unlikely that the MEME Act will gain traction. Even Republican lawmakers skeptical of crypto may not publicly oppose Trump’s involvement in digital assets.
Notably, Liccardo’s bill has limited support beyond House Democrats, but it adds to ongoing discussions on crypto regulation and political corruption. In addition, whether this bill moves forward or not, the debate over political meme coins, financial transparency, and cryptocurrency regulations continues in Congress and the crypto industry.