Rep. Sam Liccardo of San Jose has introduced a bill in the House of Representatives, joined by more than a dozen fellow Democrats, “to halt the financial exploitation of the public by corrupt federal officeholders.”

In a statement, Liccardo said the measure was prompted by reports that President Donald Trump and First Lady Melania Trump made a windfall on their respective meme coins, when “experts sounded the alarm about the glaring ethical concerns.”

Offshore investors – particularly in China –  benefited from the early-hour trading of the “$TRUMP” meme coin, even though the Constitution’s Emoluments Clause prohibits federal officials from receiving gifts from foreign nationals.

In his statement, Liccardo’s office said approximately 800,000 retail investors lost at least $2 billion when early insider investors quickly sold their $TRUMP coin after its issuance.

“Let’s make corruption criminal again,” declared Liccardo, who was a federal and local criminal prosecutor before stints as mayor and council member in San Jose. “Our public offices belong to the public, not the officeholders, nor should they leverage their political authority for financial gain. The Trumps’ issuance of meme coins financially exploits the public for personal gain, and raises the specter of insider trading and foreign influence over the Executive Branch.”

The proposed Modern Emoluments and Malfeasance Enforcement prohibits the President, Vice President, members of Congress, senior executive branch officials, and their spouses and dependent children from issuing, sponsoring, or endorsing a security, future, commodity, or digital asset.

After the asset’s issuance, the proposal would bar federal officials from engaging in the promotion or other conduct likely to benefit themselves financially. The legislation subjects violators to criminal and civil penalties and prohibits efforts to further profit from an asset issued before the bill's enactment.

While Trump and his associates used meme coins as a tool for their financial scheme, the prohibition applies to any financial asset, including securities– such as the stock of Truth Social or other companies–commodities and other financial assets.

Trump’s personal interest in profiting from issuing a crypto asset has alienated many in the crypto industry. They have expressed concern that such schemes–like those observed in Argentina and the Central African Republic–will undermine the public perception and legitimacy of the crypto industry.

Danny Scott, the CEO of CoinCorner, told the BBC that Trump “is making a mockery of the industry. It’s a stunt.”

Liccardo’s office reported that other politicians, such as Argentine President Javier Milei, have similarly engaged in a “rug pull” scheme to issue a $LIBRA meme coin that wildly profited early investors and left retail investors with approximately $4 billion in losses.

According to the Associated Press, Hayden Davis, a 28-year-old Los Angeles-based crypto promoter, appears tied to both schemes. Those transactions have since become the subject of a public corruption probe in Argentina.

“It’s appalling that we have to look to Argentina’s criminal justice system as an example of how an independent prosecutor should treat a case of blatant public corruption like this,” said Liccardo. “We cannot have a system where foreign nationals, lobbyists, and the extremely wealthy can anonymously purchase financial assets to curry political favor.”

Liccardo hosted his first town hall meeting with constituents in Saratoga on Feb. 28.

The first-term congressman serves on the House Committee on Financial Services and its subcommittees on Digital Assets, Financial Technology, and Artificial Intelligence, National Security, Illicit Finance, and International Financial Institutions, and Oversight and Investigations. He is also the Chair of the New Democratic Coalition’s Innovation & Technology Working Group.