Congressman and former Federal Prosecutor Sam Liccardo Introduces Bill to Prohibit Elected and Other Federal Officials from Issuing Digital Assets and Securities: “Let’s Make Corruption Criminal Again”

Today, Congressman Sam Liccardo (CA-16) will introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act to halt the financial exploitation of the public by corrupt federal officeholders. After President Trump and First Lady Melania Trump made a windfall on their respective meme coins, experts sounded the alarm about the glaring ethical concerns. Although the Constitution’s Emoluments Clause prohibits federal officials from receiving gifts from foreign nationals, offshore investors – particularly in China –  benefited wildly from the early-hour trading of the $TRUMP meme coin.  

Meanwhile, some 800,000 retail investors lost at least $2 billion when early insider investors quickly sold their $TRUMP coin after its issuance. The price of $TRUMP now treads water at a price some 80% below its peak. 

“Let’s make corruption criminal again,” declared Liccardo, a former federal and local criminal prosecutor. “Our public offices belong to the public, not the officeholders, nor should officials leverage their political authority for financial gain.

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,” he added.

The MEME Act prohibits the President, Vice President, Members of Congress, senior Executive Branch officials, and their spouses and dependent children from issuing, sponsoring, or endorsing a security, future, commodity, or digital asset.  After the asset’s issuance, the proposal would bar federal officials from engaging in the promotion or other conduct likely to benefit themselves financially. The legislation subjects violators to criminal and civil penalties and prohibits efforts to further profit from an asset issued before the bill's enactment.

While Trump and his associates used meme coins as a tool for their financial scheme, the prohibition applies to any financial asset, including securities– such as the stock of Truth Social or other companies–commodities and other financial assets.   

Trump’s personal interest in profiting from issuing a crypto asset has alienated many in the crypto industry. They worry that such schemes—like those observed in Argentina and the Central African Republic–will undermine the public perception and legitimacy of the nascent crypto industry. Danny Scott, the CEO of CoinCorner, told the BBC that Trump “is making a mockery of the industry. It’s a stunt.” 

Other politicians, such as Argentine President Javier Milei, have similarly engaged in a “rug pull” scheme to issue a $LIBRA meme coin that wildly profited early investors and left retail investors with approximately $4 billion in losses. According to the Associated Press, Hayden Davis, a 28-year-old American crypto promoter, appears tied to both schemes. Those transactions have since become the subject of a public corruption probe in that nation.

“It’s appalling that we have to look to Argentina’s criminal justice system as an example of how an independent prosecutor should treat a case of blatant public corruption like this,” said Liccardo. “We cannot have a system where foreign nationals, lobbyists, and the extremely wealthy can anonymously purchase financial assets to curry political favor.” 

Over 20 representatives have cosponsored the bill, which is also endorsed by Public Citizen.

"The secretive and somewhat obscure cryptocurrency has the potential to facilitate self-dealing and fraud among its users, oftentimes difficult to detect," said  Craig Holman, Ph.D., Public Citizen. "Crypto can easily provide public officials with another avenue for political corruption, and therefore should be banned for senior officials. Rep. Liccardo's MEME Act would do precisely that and is heartily endorsed by Public Citizen." 
 

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Liccardo serves on the House Committee on Financial Services and its subcommittees on Digital Assets, Financial Technology, and Artificial Intelligence, National Security, Illicit Finance, and International Financial Institutions, and Oversight and Investigations. He is also the Chair of the New Democratic Coalition’s Innovation & Technology Working Group.