The MEME Act would add a new set of ethics and enforcement rules focused on financial conflicts of interest for high-level public officials and their close family members. Specifically, it creates a new Subchapter IV in Title 5, U.S.C., defining who counts as an “adjacent” or “covered” individual and which financial assets are considered “covered assets” (including securities, commodities, derivatives, and digital assets like cryptocurrencies, meme coins, tokens, and NFTs). The core prohibition bars the issuance, sponsorship, or promotion of these covered assets for pecuniary gain by the most senior federal officials and their spouses or dependent children, during the official term and for two 180-day periods surrounding service. The bill would impose civil penalties administered by the Attorney General and criminal penalties under Title 18 for violations, with potential fines, disgorgement of profits, and possible imprisonment. The bill also includes a sense-of-the-C Congress provision stressing that public office is a trust and should not be used for private financial gain. Enforcement would involve civil action by the Attorney General and possible criminal charges for serious violations, including potential bribery or insider-trading-related offenses. The bill also incorporates a framework to treat prohibited financial transactions as unofficial acts, helping limit official capacity defenses. It was introduced in the Senate by Senator Murphy and referred to the Homeland Security and Governmental Affairs Committee.
Key Points
- 1Defines who is covered and what assets are included:
- 2- Adjacent individuals: senior executive service, high-ranking military (O-7 and above), other executive-branch positions designated by the Office of the Special Counsel, and spouses or dependent children of those individuals.
- 3- Covered assets: securities, security futures, commodities, digital assets (cryptocurrencies, meme coins, tokens, NFTs), and derivatives or funds related to those assets.
- 4- Covered individuals: the President, the Vice President, public officials, and spouses or dependent children of those officials.
- 5Prohibition on certain transactions:
- 6- A covered or adjacent individual may not issue, sponsor, or promote a covered asset for pecuniary gain during their term of service, for 180 days before service begins, or for 180 days after service ends.
- 7- Adjacent individuals are separately subject to existing legal restrictions (e.g., Section 208 of Title 18) and are not fully insulated by this prohibition.
- 8Civil penalties and enforcement:
- 9- The Attorney General can file civil actions against violators.
- 10- Civil penalties can be up to $250,000 for knowing violations, plus disgorgement of profits.
- 11- Violators may be barred from holding any federal office.
- 12Criminal penalties:
- 13- A new offense in Title 18 (Sec. 221) with the same definitions for adjacent/covered individuals and assets.
- 14- Penalties include fines (up to multiple times the financial gain) and up to 15 years’ imprisonment for serious offenses, plus potential disqualification from federal office.
- 15- Violations tied to bribery or insider trading carry enhanced penalties, including imprisonment and disqualification.
- 16Liability and immunity framework:
- 17- Violations are treated as unofficial acts beyond the scope of official duties, affecting immunities in civil and criminal liability.
- 18Legislative intent and scope:
- 19- The bill frames the prohibition as protecting the public from bribery, corruption, and foreign influence by ensuring elected and top executive officials do not profit from financial instruments issued or promoted in connection with their public roles.