US Senator Chris Murphy for the Democrat pary, has introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, a significant legislative effort designed to address the potential for corruption among federal officials profiting from digital assets, particularly memecoins.
This move comes in light of the controversial launch of the TRUMP memecoin, allegedly created by President Donald Trump just days before his inauguration earlier this year.
Senator Murphy Warns Of Potential Corruption
The TRUMP memecoin, which initially held little value, saw a dramatic surge in price following its limited release, temporarily boosting Trump’s net worth to over $50 billion.
As trading of the coin increased, Trump and his family reportedly earned more than $100 million in trading fees, raising concerns about the implications of a federal official profiting from a digital asset with no inherent value.
The coin’s “obscurity” regarding its buyers has opened the door for potential influence from wealthy individuals, including billionaires and foreign oligarchs, who may seek to curry favor with the president, according to senator Murphy.
Trump’s team also announced recently that the top 220 holders of TRUMP would be invited to an exclusive dinner with him, while the top 25 holders would receive a “Special VIP Tour” of the White House.
This announcement led to a more than 50 percent increase in the memecoin’s price, elevating its market value to approximately $2.7 billion in just a matter of days.
Following the dinner invitation, Trump and his associates reportedly earned nearly $900,000 in trading fees alone, intensifying scrutiny over the ethical implications of such arrangements.
Concerns Over Trump Family’s Memecoin Earnings
The MEME Act, introduced in both the Senate and the House—where US Representative Sam Liccardo has introduced a companion bill—aims to prevent federal officials, including the President, Vice President, Members of Congress, and senior Executive Branch officials, from issuing, sponsoring, or endorsing any securities, futures, commodities, or digital assets, including stablecoins.
The proposed legislation would also prohibit these officials from promoting such assets in a manner that could financially benefit them, holding violators accountable to both criminal and civil penalties.
Senator Murphy expressed his concerns, stating, “The Trump memecoin is the single most corrupt act ever committed by a president. Donald Trump has essentially made himself a conduit for billionaires and foreign oligarchs to send him money in exchange for political favors. This behavior is unprecedented and unacceptable.”
Representative Liccardo echoed these sentiments, criticizing the lack of response from the Republican majority. “This blatant corruption must end,” he stated. “The memecoin Act is our way of making corruption criminal again, especially in light of the Trump family’s substantial earnings and the questionable involvement of foreign entities.”
Featured image from DALL-E, chart from TradingView.com