American Democrats are launching a new legislative proposal aimed at limiting politicians' involvement in memecoins, following significant financial losses from Trump and Melania tokens.
The MEME Act Initiative
Yesterday, February 27, the Democrats introduced the MEME Act, a bill aimed at American politicians and their close associates. The originator of the initiative, California Representative Sam Liccardo, explained to the media that this law would prohibit public figures, including the president, vice-president, members of Congress, and high-ranking officials, as well as their spouses and dependents, from issuing or promoting any securities, commodities, or digital assets.
The Plummeting Memecoin Market
The presidential memecoin market exemplifies extreme volatility, highlighted by the sharp fall of tokens. Since their launch in January 2025, TRUMP and MELANIA tokens have dramatically declined in value. TRUMP has depreciated by 82%, and MELANIA by 93%, leading to significant losses for thousands of investors.
The Need for Legislative Action
Legislative action is becoming increasingly necessary as traditional regulators have yet to intervene. Hester Peirce, director of the crypto working group at the SEC, stated that most memecoins do not fall under her agency's jurisdiction, suggesting that oversight should come from Congress or other bodies like the CFTC.
The MEME Act marks an acceleration in cryptocurrency regulation in the United States, specifically targeting political exploitation of memecoins. This is part of a broader initiative, with the SEC establishing a dedicated task force for crypto oversight.
