The #MEMEAct (short for Mitigating Endorsements of Memecoins by Elected officials Act) is a proposed U.S. legislation introduced by House Democrats, led by Representative Sam Liccardo, on February 27, 2025. It aims to prohibit top federal officials, including the President, Vice President, members of Congress, senior executive branch officials, and their spouses and dependent children, from issuing, sponsoring, or endorsing securities, futures, commodities, or digital assets, particularly memecoins like $TRUMP. The bill responds to concerns about potential corruption, extortion, or bribery through memecoin promotions, especially given their speculative and volatile nature. Below is a detailed analysis of the MEME Act.
➡️Key Provisions of the MEME Act
Scope of Prohibition:
The act targets top federal officials and their immediate families, barring them from:
Issuing or sponsoring digital assets, including memecoins.
➡️Endorsing or promoting securities, futures, commodities, or cryptocurrencies.
It imposes criminal and civil penalties for violations, aiming to deter conflicts of interest and market manipulation.
➡️Rationale:
Memecoins, defined as crypto assets inspired by internet memes, trends, or cultural phenomena (e.g., $TRUMP, Dogecoin), are driven by speculation and community enthusiasm rather than utility. The SEC’s February 2025 statement clarified that memecoins are not securities but akin to collectibles, lacking federal securities law protections.
The bill addresses concerns that public officials could exploit their influence to pump memecoin prices, potentially engaging in unethical or illegal financial activities.
➡️Legislative Status (May 7, 2025):
Introduced in the House on February 27, 2025, by Rep. Sam Liccardo, the MEME Act has not yet progressed to a vote.
It faces challenges due to bipartisan dynamics:
Support: Democrats, wary of memecoin-driven corruption, back the bill to protect investors and maintain market integrity.
The bill is in early stages and may face delays, similar to the stablecoin bills.
