The MEME Act prohibits elected and high-ranking federal officials, as well as their families, from using their positions for personal financial gain by promoting or benefiting from financial instruments like stocks, commodities, and digital assets, with penalties including fines, imprisonment, and civil lawsuits.
Sam Liccardo
Representative
CA-16
The MEME Act prohibits elected and other high-ranking federal officials, as well as their families, from promoting financial assets, including securities, commodities, and digital assets, for personal gain. It allows the Attorney General, private parties, and others to sue violators. Violators may face civil penalties up to $250,000, be required to return profits to the Treasury, and may face criminal penalties including fines and imprisonment. The Act aims to prevent public officials from using their positions for personal financial benefit, addressing bribery, insider trading, and corrupt foreign influence.
MEME Act Cracks Down on Officials Promoting Investments: Bans Crypto, Stock Hype for Top Feds and Families, 180-Day Rule Before and After Service
The Modern Emoluments and Malfeasance Enforcement Act, or "MEME Act," aims to stop federal officials from using their positions for personal financial gain. This bill flat-out prohibits certain financial transactions – think hyping up stocks, crypto, or NFTs – by top officials and their families.
No More "Official" Crypto Shilling
The MEME Act specifically targets "covered individuals," which includes the President, Vice President, members of Congress, high-ranking executive branch employees (Senior Executive Service, etc.), top military brass (O-7 pay grade and above), and their spouses and dependent children. These folks, along with "adjacent individuals" (close family and associates), are banned from issuing, sponsoring, or promoting any "covered asset" for profit. "Covered assets" include the usual suspects: securities, commodities, and—importantly in today's world—digital assets like cryptocurrencies and NFTs (Section 3).
This prohibition isn't just during their time in office. It extends to 180 days before they start their service and 180 days after they leave. So, no more joining a crypto company right after leaving a regulatory agency, at least not for six months. The bill even allows the Attorney General to go after violators with civil penalties up to $250,000 and force them to return any profits to the Treasury (Section 3). This applies retroactively, meaning it doesn't matter when the asset was initially issued.
Real-World Consequences
Imagine a high-ranking official at the Treasury Department tweeting enthusiastically about a new cryptocurrency they just invested in. Under the MEME Act, that could be a major violation. Or picture a Senator's spouse heavily promoting a particular stock on social media while the Senator sits on a committee overseeing that industry. Again, big trouble. The bill even allows regular investors or competitors who are harmed by these actions to sue for damages (Section 3).
Jail Time on the Table?
Things get even more serious if the violations are knowing and cause significant harm. If a covered individual's actions lead to public losses of $1,000,000 or more, or if they (or their family/business associates) personally benefit financially from the sale, purchase, or distribution of the asset, they could face fines and up to five years in prison (Section 3). The MEME Act also explicitly connects these violations to existing bribery and insider trading laws, meaning even more penalties could be added on.
The Bigger Picture
This bill is all about restoring trust. Congress is saying loud and clear that public office shouldn't be a get-rich-quick scheme (Section 2). By tackling the potential for officials to manipulate markets or use inside information for personal gain, especially in the rapidly evolving world of digital assets, the MEME Act aims to level the playing field and make sure public servants are actually serving the public. While the restrictions are tight, potentially making some folks think twice about government work, the goal is to make sure those in power are acting in the best interests of the country, not their own wallets. It's a direct response to growing concerns about conflicts of interest and the potential for abuse in the digital age.