U.S. Congress to Ban TRUMP and MELANIA Crypto Tokens

The American Democrats are launching an unprecedented offensive against memecoins associated with political figures. California Representative Sam Liccardo is preparing the MEME Act, which aims to prohibit politicians from issuing or promoting digital assets. This initiative comes after the spectacular collapse of the TRUMP and MELANIA tokens that caused billions in losses for crypto investors.

A legislative initiative in direct response to the Trump and Melania tokens

Yesterday, February 27, the House Democrats began presenting the MEME Act, a bill specifically targeting American officials and their close associates.

Sam Liccardo, the originator of this initiative, told ABC News that this legislation would prohibit a wide range of public officials – president, vice-president, members of Congress, and high-ranking officials – as well as their spouses and dependent children, from issuing, sponsoring, or approving any securities, merchandise, or digital assets, a measure that aligns with the American offensive on crypto regulation.

“Let’s make corruption criminal again,” Liccardo asserted, emphasizing that American public offices belong to the public and that politicians should not use their authority for personal gain. This proposal, which already had a dozen Democratic sponsors, also seeks to garner bipartisan support.

The timing of this legislative initiative is significant, occurring in a context marked by the successive launches of the TRUMP and MELANIA memecoins. Indeed, the new president launched his token on January 17, just before his official inauguration, followed two days later by his wife Melania Trump, who issued her own memecoin.

A plummeting presidential memecoin market and nonexistent regulation

The performance of presidential memecoins perfectly illustrates the extreme volatility of this speculative market. Since their launch in January 2025, these tokens have undergone a spectacular collapse: TRUMP has fallen by 82% from its historical peak, while MELANIA has plunged by 93%, according to the data from CoinGecko.

These collapses represent colossal losses for investors: nearly 813,000 crypto wallets have been impacted, with losses estimated at 2 billion dollars. Meanwhile, the Trump Organization and its partners have reportedly collected around 100 million dollars in trading fees.

Legislative action is becoming increasingly necessary as traditional regulators appear hesitant to intervene. Hester Peirce, director of the crypto working group at the SEC, recently stated that most memecoins do not fall under the jurisdiction of her agency, suggesting that oversight should instead come from Congress or other bodies like the CFTC.

The MEME Act marks an acceleration in crypto regulation in the United States, specifically targeting the political exploitation of memecoins. This initiative is part of a larger movement, with the SEC having established a dedicated Crypto Task Force at the beginning of February, aiming to finally clarify the rules of the game for all players in the sector.