California Democrat Rep. Sam Liccardo, the newly elected representative for Silicon Valley, has announced that the first piece of legislation he is sponsoring directly targets President Donald Trump’s recently launched meme coin, taking his fight directly to Washington D.C. Liccardo stated, “That wasn’t my plan when I ran for office, I can assure you.”
The congressman believes that President Trump’s introduction of a meme coin just before he took office warrants a legislative response. While early buyers of the coin saw quick profits, the price quickly plummeted, leaving many investors nursing their wounds after significant losses.
Liccardo articulated his concerns:
That behavior is so self-evidently unethical that it raises the question: why isn’t there a clear enough prohibition?
The proposed legislation, dubbed the Modern Emoluments and Malfeasance Enforcement Act (MEME Act), seeks to impose restrictions that would prevent the president, members of Congress, and senior officials—and their families—from issuing or sponsoring cryptocurrencies and similar financial products. The bill would also require Trump to forfeit any profits generated from the sale of his meme coins.
Scheduled for introduction this Thursday, Liccardo’s bill faces an uphill battle in the Republican-controlled Congress, yet he remains hopeful for its future relevance. “This serves as a placeholder for when Democrats regain power and an important symbolic gesture against what I consider obvious corruption,” he explained.
Meme coins, often seen as a whimsical and highly volatile aspect of the cryptocurrency market, can rapidly gain value based on social media trends and speculation. Critics have denounced them as little more than schemes benefiting insiders at the expense of everyday investors, while supporters argue that they represent a glimpse into a potential revolution in online financial transactions.
Trump has a controversial history with promoting various products (bibles, hats, coffee) and recently pivoted to cryptocurrency projects that could enhance his personal wealth. The meme coin in question soared to a staggering $70 upon its release, but has since sunk to around $12. Trading fees associated with the coin have reportedly raked in tens of millions of dollars for entities involved, including a company owned by Trump.
Beyond Trump, his family has also ventured into the crypto space. The recent ethics agreement released by the Trump family business prohibits the former president from day-to-day involvement in outside business affairs and restricts the financial information made available to him.
Rep. Liccardo’s legislation could also empower private investors to sue public officials if they suffer losses due to meme coins linked to those officials. “You need to have some enforcement mechanism, and a private right of action helps to keep everybody honest,” Liccardo said.
As Democrats grapple with alignment and direction in the early days of the Trump presidency, Liccardo’s bold move highlights a growing concern over ethical practices in the rapidly evolving world of cryptocurrency, particularly as it intertwines with political influence and public trust.
