Democrats introduce MEME Act, saying Trump rug pulled 800,000

California Democrat Sam Liccardo said a radical from his enactment volition present a measure to prohibition apical officials — and their household members — from capitalising connected idiosyncratic memecoins.

The Modern Emoluments and Malfeasance Enforcement Act, oregon the MEME Act, would prohibit the president, vice president, members of Congress, elder enforcement subdivision officials and their spouses and babelike children from issuing, sponsoring oregon endorsing a security, future, commodity oregon integer asset.

“We’re going to marque corruption transgression again,” said Liccardo successful an X video connected Thursday.

He accused Trump of executing a rug pull — referring to crypto slang for a strategy that lures investors into buying a token which insiders past rapidly sell.

He said helium has much than a twelve cosigners for the bill.

While Trump and household haven’t pulled retired their plus from his oregon First Lady Melania Trump’s memecoins yet, immoderate successful the crypto assemblage person decried it arsenic a currency grab.

Liccardo’s words travel astatine a dicey clip for memecoins, the erstwhile darling of the crypto industry.

This week, Bitwise CIO Matt Hougan said the existent crypto wipeout volition trigger the end of the memecoin boom, particularly erstwhile combined with the chaos astir Argentine president Javier Milei’s Libra scandal.

For now, Republicans person remained soundless regarding Trump’s wide crypto activities.

His ties see memecoins, a DeFi app, NFTs, and a recently launched concern concern called Truth.Fi.

The Trump crypto empire topped $16 cardinal astatine 1 point.

The MEME Act whitethorn unit Trump’s enactment to instrumentality a side.

Trump’s representatives did not instantly reply to a petition for comment.

Trump’s memecoin

Liccardo didn’t clasp backmost against the president for his engagement successful launching the Trump memecoin.

On January 17, conscionable a fewer days earlier helium took office, the then-inbound president promoted a memecoin dubbed Trump.

The token changeable up to $70 with a $24 cardinal marketplace value, putting it successful the apical 20 astir invaluable cryptocurrencies.

Its worth has since dropped to $2.5 billion. The token presently trades for astir $12, according to CoinGecko.

Trump was rapidly followed by the First Lady’s memecoin. In akin fashion, Melania soared to $1.6 billion, but has since plummeted much than 90% to $130 million, according to CoinGecko.

Preacher Reverend Lorenzo Sewell, who delivered a passionate benediction astatine Trump’s inauguration, launched his ain memecoin.

800,000 losers

The MEME Act would not lone prohibition apical officials from promoting memecoins, but would besides springiness retail investors the quality to writer malicious actors that perpetrate acts of fiscal fraud.

“Almost each 1 of the 800,000 radical that bought the memecoin mislaid a batch of money,” said Liccardo. “We’re going to guarantee determination are transgression and civilian penalties truthful radical tin sue.”

DL News didn’t independently verify that figure, but Trump has mislaid implicit 82% — oregon astir $12 cardinal — of its marketplace worth since the launch.

ABC News archetypal reported connected the MEME act.

Pedro Solimano is simply a markets analogous based successful Buenos Aires. Got a tip? Email him astatine [email protected].