CALIFORNIA – California representative Sam Liccardo introduced a bill, February 27, to stop elected officials from taking advantage of the public financially.
In January 2025, both President-elect Donald Trump and incoming First Lady Melania Trump launched their own meme coins – digital tokens inspired by internet culture.
After the coin’s launch, approximately 800,000 small investors lost at least $2 billion, according to Liccardo.
The coin’s value surged to its peak – $75. Early insider investors quickly sold their $TRUMP coin contributing to its price drop. Today the coin is valued at $12.24.
The selloff led to significant profits for early investors.
“The Trumps’ issuance of meme coins financially exploits the public for personal gain, and raises the specter of insider trading and foreign influence over the Executive Branch,” said Liccardo.
The official Trump meme coin website states that the symbol ‘$TRUMP’ is not intended as an investment opportunity.
Law punishes violators with fines or jail time
The Modern Emoluments and Malfeasance Enforcement (MEME) Act stops top government officials, including the President, Vice President, Congress members, and their families, from promoting or supporting things like stocks, commodities, or digital assets.
Liccardo said the rule applies to any type of financial asset, like Truth Social’s stock, commodities, and other financial products.
The law punishes violators with fines or jail time. It also stops them from making money off assets issued before the law was passed.
Schemes undermine public perception of crypto industry
Many in the crypto industry felt alienated after Trump’s meme coin announcement. Dragonfly crypto venture capital firm partner Tom Schmidt said it ‘felt very grifty and cheap.’
Liccardo says they worry that such schemes — like those observed in Argentina and the Central African Republic – will undermine the public perception and legitimacy of the emerging crypto industry.
Trump announced March 2, that his administration is working toward creating a “Crypto Strategic Reserve” that will include cryptocurrencies XRP, Solana, Cardano, Bitcoin and Ethereum. The administration is aiming to strengthen the nation’s position in the digital asset space.
These are categorized as “utility” and “store-of-value” coins, rather than meme coins.
