#MEMEAct

The MEME Act: Targeting Financial Transactions by Federal Officials

A new bill introduced in the House of Representatives, dubbed the "Modern Emoluments and Malfeasance Enforcement Act," or the "MEME Act" (H.R. 1712), aims to restrict federal elected officials and their families from engaging in certain financial transactions.

Introduced on February 27, 2025, the bill has been referred to the Committees on Oversight and Government Reform, the Judiciary, and House Administration.

The core purpose of the MEME Act is to prevent those in public office from using their position for private financial gain through the issuance, sponsorship, or promotion of financial instruments. The Act defines "prohibited financial transaction" as the issuance, sponsorship, or promotion of a "covered asset" for pecuniary gain. "Covered individuals" subject to these restrictions include federal elected officials, their spouses, and dependent children.

The legislation is a response to concerns that public office holders could exploit their positions to profit from financial ventures, potentially leading to conflicts of interest, facilitating bribery, and enabling corrupt foreign influence.

While the informal name "MEME Act" might suggest a focus solely on "memecoins," the bill's language is broader, encompassing digital assets, securities, and commodities. It seeks to ensure that the focus of elected officials remains on serving the public rather than pursuing personal financial enrichment through the leverage of their office.

The bill outlines potential civil penalties of up to $250,000 for violations, as well as the disgorgement of any profits made from prohibited financial transactions. The Act also includes a provision for retroactive disgorgement of profits in certain cases.