The US House of Representatives is considering a bill that would ban government officials from issuing, sponsoring or promoting memecoins, amid concerns about the possibility of profiting from political power.

The MEME Act and its scope

The bill, called the Modern Emoluments and Malfeasance Enforcement (MEME) Act, is expected to be introduced in the House of Representatives on February 27. If passed, the law would apply to:

- The US President and Vice President
- Members of Congress
- Senior government officials
- Their spouses and children

According to Representative Sam Liccardo, who introduced the bill, the provision is aimed at preventing government officials from exploiting the crypto market for financial manipulation.

Risks of Politicians Getting Into Memecoins

Liccardo believes that politicians or their relatives getting involved in the memecoin market can pose a number of risks, including:

- Market manipulation: Using political influence to drive up token value

- Insider trading: Seizing information before the public for personal gain

- Foreign influence: Potential for illegal funding

“Let’s make corruption a crime again,” Liccardo said, stressing the need for such a law to ensure transparency in politics.

Previously, the LIBRA memecoin scandal involving the President of Argentina and the KIP Protocol team showed the serious risks of politicians getting involved in the crypto market.

Are TRUMP and MELANIA memecoins affected?

The MEME Act was introduced in the context of former President Donald Trump’s family being involved in memecoins named after him and his wife Melania Trump.

Both memecoins have lost nearly 90% of their value from their peak and show no signs of recovering. According to experts, they are only relying on Trump's image without a solid foundation, making the outlook not very optimistic.

Currently, 12 Democratic congressmen support the MEME Act bill, and they are looking for consensus from both parties before submitting it to the House of Representatives. If passed, this would be a strong step to limit the intervention of politicians in the crypto market, especially memecoin.