House Democrats in the U.S. have proposed the MEME Act targeting high-ranking officials' activities in the meme coin sector.
MEME Act Bill: Key Points
The MEME Act bill proposes a ban on U.S. officials such as the president, vice president, and Congress members from developing or promoting meme coins for financial gain. The proposed legislation prohibits politicians and their families from promoting any digital assets including meme coins and other securities classified along with these assets.
Concerns Over Political Influence and Insider Trading
According to Representative Sam Liccardo, politicians' involvement in the meme coin market raises concerns about potential conflicts of interest, including insider trading and undue external influence. The promotion of these tokens by government figures risks undermining the integrity of the executive branch, especially when connected to financial gains. The move aims to prohibit politicians from engaging in meme coins to address these ethical concerns.
Legal Actions on Political Coins
The MEME Act has gained recognition in the U.S. with American attorneys investigating actions related to political meme coins. DOJ investigations have begun scrutinizing the Libra meme coin associated with Argentine President Javier Milei for economic crimes and market manipulation. Initial investors earned substantial profits before a liquidity pool depletion crashed the coins. The team behind the Libra token is also linked to the MELANIA meme coin, creating additional challenges for regulators. The MEME Act seeks to introduce regulations to curb the expanding cryptocurrency market.
The MEME Act aims to close legal loopholes in politicians' participation in meme coins and reinforce the integrity of the executive branch.
