US lawmakers have proposed acts banning meme coins like Trump tokens

Congressional Democrats have hit Trump memecoin by introducing a bill in the House to ban federal government officials and their families from issuing or promoting memecoin and other financial products, citing ethical concerns.

California Democrat Sam Ricardo is reading Trump’s push against memecoin argued that targeting the president’s crypto token was not his original intention when he first took office.

However, he argued that there was some kind of reaction to Trump’s move to release new meme coins, especially as token prices plummet rapidly, leaving some investors with losses.

Ricardo believes President Trump’s decision to launch Memecoin is unethical and abuse of his authority

Ricardo, a former criminal prosecutor, argued that the state should target Trump’s meme chine and revive the stricter anti-corruption laws. He said Trump exploited people for his authority, office and his personal interests, calling the president’s actions “unethical.”

He said Trump’s tokens raised concerns about transparency, insider trading and inappropriate foreign influence, and even some Trump supporters disapproved of the launch of the memecoin. Therefore, he introduced legislation against tokens on Thursday. This introduced modern emoliment and malfunction enforcement, or meme law.

Ricardo even said there is a Democrat community of about 12 people supporting his laws.

The bill must apply to the president, vice president, members of Congress, senior executives and their close relatives. Violators can face fines and up to five years of prison.

Previous draft bills direct that Trump must abandon his revenue from selling tokens. Additionally, the law prevents either the President, his family or members of Congress from issuing or promoting securities or crypto assets such as Memecoin.

The Act also introduces criminal and civil penalties and prohibits certain financial assets. Additionally, private investors who lose their funds from meme coins advertised by state authorities will be allowed to sue.

Liccardo commented, “We need an enforcement mechanism and a right to personal actions must be required.”

But while the bill may not be passed in a Republican-controlled Congress, he believes the law will lay the foundation for Democrats if they regain power or at least show their stance on Trump’s corruption.

Trump and his family are actively involved in several crypto projects

Meme coins have long been seen as risky and speculative assets, but most critics compare them to Ponzi’s schemes that benefit only insiders and unethical celebrities.

When Trump first released the token, its price quickly surged to nearly $70, falling to around $12. Nevertheless, analysts believe the tokens generated millions of dollars for the launch entity before the huge price fell from the transaction fees.

First Lady Melania Token also saw a trajectory similar to Trump’s trajectory. It exploded after its release, but it fell from peak times, $0.8522. Needless to say, one of the developers involved in the launch of the Melania Token has been found to be entangled in the Libra Token scandal, which Argentine President Javier Mirei is still under investigation.

In addition to his and Melania’s token release, Trump and his sons launched a decentralized crypto platform in 2024, supporting an online store selling crypto-themed sneakers.

However, the president tried to distance himself from his family’s crypto projects and the entire business by signing ethics agreements that prevented him from conducting external business transactions.

Ricardo pushes memes’ actions to curb corruption, but faces political and industrial resistance

Meme Act has been supported by Adam Schiff (D-Calif), Jamie Ruskin (D-MD.), and Alexandria Ocasio-Cortez (DN.Y.). However, its passage in a GOP controlled parliament is highly unlikely. Liccardo said the bill is a symbolic step against corruption and a basis for action if Democrats regain control of the state legislature.

Beyond Meme Coins, the broad language of law captures all securities and digital assets designed to strengthen loopholes for indirect benefits. Additionally, disclosure of foreign cryptocurrency relations is required, but the law presents an issue of enforcement. Mixed reactions from the industry: Some code advocates have taken Trump’s actions to social media to criticize him as “stunts,” while others have characterized the bill as politically unfeasible.

The proposal illustrates the growing scrutiny of officials’ financial behavior in financial markets. Since January 2025, freshmen representing Silicon Valley’s District 16 have held positions as advocates for ethical governance in meme law. However, his party faces a lot of scrutiny over contradictions in dealing with economic conflicts. A small number of Democrats, including Progressives, like Rep. Alexandria Ocasio-Cortez (AOC), support a ban on Congress’ stock trading, but establishment figures like former speaker Nancy Pelosi resisted such reforms.

Paul Pelosi, Pelosi’s husband; Faced with criticism The deals made during the Covid-19 pandemic include a $5 million windfall trading option in Alphabet stock prior to a technology hearing she overseen. Pelosi defended lawmakers’ right to trade in the market, saying some proposals were “anti-free markets.” Public Voting Show that you support restrictions on what Americans can trade. Liccardo’s concerns about Meme Coin Regulation highlight the Democrats’ bigger challenge of balancing their aspirations for progressive reform with strong economic benefits.