California Democrat Rep. Sam Liccardo, a freshman congressman representing Silicon Valley, expressed surprise that the first bill he is sponsoring targets President Donald Trump’s meme coin.
“That wasn’t my plan when I ran for office, I can assure you,” said Liccardo, who previously served as the mayor of San Jose.
However, he said the launch of Trump’s meme coin just before taking office last month required a response. While early buyers benefited, the coin’s price rapidly declined, resulting in significant losses for others.
Even some crypto enthusiasts who support Trump found the launch inappropriate.
“That behavior is so self-evidently unethical that it raises the question why isn’t there a clear enough prohibition,” Liccardo said. He raised concerns about transparency, insider trading, and potential foreign influence tied to Trump’s meme coin.
Liccardo’s proposed legislation, named the Modern Emoluments and Malfeasance Enforcement (MEME) Act, aims to prevent the president, members of Congress, senior officials, and their immediate family members from issuing or endorsing securities, commodities, or cryptocurrencies, including meme coins.
Additionally, the bill would require Trump to forfeit any profits earned from the sale of his meme coin.
Although the bill has no realistic chance of passing in the Republican-controlled Congress, Liccardo sees it as a placeholder for potential future action if Democrats regain power. He also considers it a symbolic stand against what he describes as blatant corruption.
His proposal comes as Democrats struggle to find their footing in the early weeks of Trump’s presidency.
Meme coins, known for their volatility, often start as jokes with little real value but can see dramatic price spikes if enough people invest in them.
Critics argue that meme coins function as Ponzi schemes that primarily benefit insiders and high-profile figures, while supporters believe they could be early indicators of a financial revolution driven by the internet.
Trump has frequently disregarded traditional presidential norms by endorsing and promoting commercial products, including branded Bibles and perfume. However, he has been particularly aggressive in backing cryptocurrency-related ventures that could significantly increase his personal wealth.
The Trump meme coin initially surged to nearly $70 but has since dropped to around $12. Researchers estimate that trading fees have generated tens of millions of dollars for entities involved in the coin’s launch, including a company owned by Trump.
In addition to the meme coin, Trump and his sons helped introduce a decentralized finance cryptocurrency platform last year. The former president has also endorsed online businesses selling crypto-themed sneakers and luxury watches priced at $100,000.
Recently, the Trump family business released an ethics agreement stating that Trump would not be involved in “day-to-day” decision-making related to outside business ventures and would receive limited financial information.
Though once skeptical of cryptocurrencies, Trump changed his stance last year, vowing to make the U.S. a global leader in digital assets. The cryptocurrency industry, which felt unfairly targeted under the Biden administration, embraced Trump and invested heavily in his election campaign.
First Lady Melania Trump also launched a meme coin that saw a brief surge in value around the inauguration before experiencing a steep decline. A crypto developer involved in that project, Hayden Davis, also played a role in a separate meme coin launch that contributed to Argentine President Javier Milei facing a corruption investigation.
Davis has been outspoken about the nature of meme coins, acknowledging their risks.
“It is an insiders’ game. This is an unregulated casino,” he said.
Liccardo’s bill not only seeks to impose a criminal prohibition but would also allow private investors who lose money on meme coins promoted by public officials to take legal action.
“You need to have some enforcement mechanism and a private right of action helps to keep everybody honest,” Liccardo said.
