Yerevan (CoinChapter.com) - Congressman Sam Liccardo has introduced the MEME Act, a bill that seeks to ban political meme coins such as the TRUMP token and impose penalties on officials who launch or support them. The proposal prohibits the U.S. president, 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 also requires Donald Trump to return all profits from the issuance of the TRUMP token. Liccardo received the support of 12 Democratic co-sponsors, but the bill lacks bipartisan support. The MEME Act faces challenges in its passage as most Republicans support cryptocurrency.

Political meme coins spark crypto industry concerns
The launch of the TRUMP token has drawn attention to crypto scams and political corruption. Reports show that nearly 50% of TRUMP token investors were first-time cryptocurrency users, making them vulnerable to fraud. Within days of the launch, scammers took advantage of the hype around the project and stole $857 million.
Liccardo addressed these concerns in an interview:

“That was not my plan when I ran for office, I can assure you. [Trump’s] behavior was clearly unethical, which raises the question of why there isn’t sufficient clarity around the prohibition of political meme coins. You need to have some enforcement mechanism, and a private right of action helps keep everyone honest.”

The MEME Act reflects growing scrutiny of the use of cryptocurrencies in politics. It seeks to prevent elected officials from using crypto assets for financial gain.

Crypto scams and political tokens come under scrutiny
The rise of political meme coins has drawn criticism from industry insiders, including Ethereum co-founder Vitalik Buterin. Concerns about crypto scams, fraud, and the misuse of digital assets in politics continue to rise. Some foreign governments have explored the possibility of launching political meme coins for financial or propaganda purposes.
The MEME Act seeks to set legal boundaries for political crypto projects. Some in the crypto industry believe the tokens facilitate money laundering and fraud, while others see them as part of the innovation of digital assets.

MEME bill faces uncertain future in Congress
Republicans are generally supportive of cryptocurrencies, which makes it unlikely that the MEME bill will gain traction. Even Republican lawmakers who are skeptical of cryptocurrencies may not publicly oppose Trump’s involvement in digital assets.
It’s worth noting that Liccardo’s bill has limited support outside of House Democrats, but it adds to the ongoing discussion about crypto regulation and political corruption. In addition, whether or not the bill advances, the debate over political meme coins, financial transparency, and cryptocurrency regulation continues in Congress and the crypto industry.