Can the MEME Act proposed by U.S. Congress members stop politicians from "harvesting" the public?

Author: Zen, PANews

On February 27, California Democratic Congressman Sam Liccardo launched his first piece of legislation after taking office, named the "Modern Compensation and Misconduct Enforcement Act" (MEME Act), aimed at prohibiting federal officials from issuing, sponsoring, or promoting securities, commodities, or digital assets, with violators facing criminal and civil penalties.

"Make corruption criminal again," the newly elected congressman opened with a phrase reminiscent of "MAGA" in the U.S. House of Representatives.

Targeting Trump and TRUMP, forcing him to "eat his words"

The "Modern Compensation and Misconduct Enforcement Act," initiated by Liccardo, has over a dozen Democratic co-sponsors. According to the draft of the bill, it will prohibit the President, members of Congress, and other senior officials, as well as their spouses and children, from issuing or sponsoring securities, commodities, and meme coins like cryptocurrencies. In addition to limiting the potential future behavior of politicians issuing coins to "harvest" profits, the bill also requires Trump to surrender all profits he made from selling meme coins.

"I think when President Trump started implementing this scheme to inflate stock prices and sell off, everyone was confused," Liccardo stated, emphasizing that such behavior is clearly unethical, prompting the question of why there isn't a sufficiently clear prohibition. He also added that Trump's meme coin has raised concerns about transparency, insider trading, and negative overseas influences.

On January 18, Beijing time, just before Trump took office, he announced the launch of the meme coin named after him, $TRUMP. According to the $TRUMP official website, two subsidiaries of the Trump Organization control 80% of the total token supply, with an initial circulation of only 200 million tokens, while the remaining 800 million will be gradually unlocked over the next three years. After Trump himself verified the authenticity of "personally endorsing" the coin, $TRUMP surged rapidly, with its fully diluted market cap once exceeding $70 billion, peaking at $80. According to CoinGecko data, as of February 28, the price of $TRUMP had fallen to $11.32, a decline of over 85%.

According to on-chain data analysis company Chainalysis, approximately 200,000 retail investors suffered significant losses during the crash, with retail investors and MAGA supporters drawn in by Trump's influence becoming the ones left holding the bag. Additionally, Reuters reported that the trading platform Meteora, where $TRUMP was launched, allows creators to "mint meme coins and earn fees for life," while the creators of $TRUMP earned about $100 million by providing liquidity on the Meteora exchange.

Liccardo also compared Trump's meme coin to similar actions by other national leaders, such as the meme coin CAR from the Central African Republic and Argentine President Javier Milei's promotion of LIBRA, which made him the focus of a corruption investigation.

A bill unlikely to pass

"I can assure you, this was not part of my plan when I ran for office," Liccardo said, explaining that the reason for introducing the bill is that Trump's meme coin, launched last month before he took office, needs some form of response, as its actions have even disgusted cryptocurrency enthusiasts who support Trump.

However, in the currently Republican-controlled Congress, the "Modern Compensation and Misconduct Enforcement Act," which directly targets Trump, has almost no chance of passing, a fact Liccardo is well aware of. He also stated that the bill could serve as a "placeholder," meaning that if the Democrats gain power in the future, it might be reintroduced and pushed through, and it also serves as a symbolic protest against the clearly existing corruption.

"We need to ensure that such things do not happen again in the future," Liccardo said.

However, just like laws such as the Hatch Act have prohibited government officials from using their positions to influence political campaigns, their effectiveness ultimately depends on the decisions made by the White House, and Liccardo's new bill may be similar.

A federal investigation revealed that during Trump's previous term, at least 13 former Trump administration officials violated the law by mixing campaign activities with government duties. However, the past 2020 election indicated that, at least for the highest-ranking government officials, if the White House chooses to ignore the requirements of the Hatch Act, the American public will receive no protection against senior government officials using their official power for partisan political gain.

Additionally, Trump's daughter, Ivanka, who was a senior advisor at the time, promoted Goya coffee beans on Twitter in 2020, claiming the company was treated unfairly and stating that she "absolutely had the right" to express her support publicly. Government oversight agencies criticized her for violating the ethical norms prohibiting government officials from using their positions to support specific products or groups. The White House did not impose any penalties for her ethical violations.

In contrast, President Trump tweeted the next day expressing his love for the Goya brand, and he posted a photo on his Instagram account showing himself in the Oval Office with various Goya products on his desk, even though the ethical standards for executive branch employees clearly state that they cannot use their official positions to promote private enterprises.

Currently, the real barrier preventing politicians from continuing to flood into the meme coin craze is the already shaky market.