Modern Emoluments and Malfeasance Enforcement Act or the MEME Act
This bill prohibits the President, the Vice President, Members of Congress, those holding Senior Executive Service positions, admirals, generals, and other federal public officials from engaging in or benefiting from the issuance, sponsorship, or promotion of certain assets. The spouse and dependent children of such an official are also covered by the prohibition.
Assets covered by the bill are securities, security futures, commodities, digital assets such as cryptocurrency or a meme coin, as well as derivatives, options, warrants, mutual funds, or exchange traded funds of the preceding assets.
The prohibition applies to (1) such officials during their term of service and for 180 days prior to and after their service, and (2) the spouse and dependent children of such an official during that same period.
Civil and criminal penalties under the bill include disgorging (giving) to the Treasury any profits from prohibited transactions, fines, and imprisonment for up to five years. The bill provides additional penalties for such prohibited activities if they involve bribery or insider trading.
The U.S. Office of Special Counsel may also determine that federal employees or officers serving in other positions are covered by the prohibition.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1712 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1712
To amend chapter 131 of title 5, United States Code, with respect to
prohibited financial transactions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2025
Mr. Liccardo (for himself, Mr. Khanna, Ms. Norton, Mr. Mullin, Mr.
Grijalva, Mr. Thanedar, Mrs. Torres of California, Mr. Carson, Mr.
Swalwell, Mr. Peters, Mr. Soto, Ms. Elfreth, Mr. Garamendi, Ms.
Barragan, Mr. Olszewski, Mr. Lieu, Mr. Goldman of New York, Mr. Smith
of Washington, and Mr. Turner of Texas) introduced the following bill;
which was referred to the Committee on Oversight and Government Reform,
and in addition to the Committees on the Judiciary, and House
Administration, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, with respect to
prohibited financial transactions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modern Emoluments and Malfeasance
Enforcement Act'' or the ``MEME Act''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that Federal elected officials must not
utilize their position, granted by the trust of the public, for private
financial gain. The issuance, sponsorship, or promotion of financial
instruments by public office holders will deprive the public of the
office holder's honest services, facilitate bribery by investors or
purchasers, and result in public exploitation and corrupt foreign
influence. Members of Congress and the Executive Branch must not seek
to use their public office to benefit financially; rather their
positions are held in trust for the benefit of the American public.
SEC. 3. PROHIBITED FINANCIAL TRANSACTIONS.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding at the end the following:
``SUBCHAPTER IV--FINANCIAL EXPLOITATION BY A PUBLIC OFFICE HOLDER
``SEC. 13151. DEFINITIONS.
``In this subchapter:
``(1) Adjacent individual.--The term `adjacent individual'
means--
``(A) each officer or employee in the executive
branch holding a Senior Executive Service position (as
defined under section 3132(a)(2));
``(B) each member of a uniformed service whose pay
grade is at or in excess of O-7 under section 201 of
title 37;
``(C) each officer or employee in any other
position determined by the Special Counsel of the
United States, in consultation with the Director of the
Office of Government Ethics, to be of equal
classification to a position described in subparagraph
(A) or (B); or
``(D) the spouse or dependent child of any
individual described in subparagraph (A), (B), or (C).
``(2) Prohibited financial transaction.--
``(A) In general.--The term `prohibited financial
transaction' means the issuance, sponsorship, or
promotion of a covered asset for pecuniary gain.
``(B) Covered asset.--The term `covered asset'
means--
``(i) a security (as such term is defined
in section 3(a) of Securities Exchange Act of
1934);
``(ii) a security future (as such term is
defined in section 3(a) of Securities Exchange
Act of 1934);
``(iii) a commodity (as defined in section
1a of the Commodity Exchange Act);
``(iv) a digital asset which can be sold
for remuneration, including a cryptocurrency, a
meme coin, a token, or a non-fungible token; or
``(v) any derivative, option, warrant,
mutual fund, or exchange-traded fund of an
asset described in clause (i), (ii), (iii), or
(iv).
``(3) Covered individual.--The term `covered individual'
means--
``(A) the President;
``(B) the Vice President;
``(C) a public official (as defined in section
201(a) of title 18); or
``(D) the spouse or dependent child of any
individual described in subparagraph (A), (B), or (C).
``(4) Dependent child.--The term dependent child has the
meaning given the term in section 13101.
``SEC. 13152. PROHIBITION ON CERTAIN TRANSACTIONS.
``(a) Prohibition.--Except as provided in subsection (b), a covered
individual or an adjacent individual may not engage in or benefit from
a prohibited financial transaction--
``(1) during the term of service of the covered individual
or adjacent individual;
``(2) during the 180-day period prior to the date on which
the service of such covered individual or adjacent individual
commenced; or
``(3) during the 180-day period beginning on the date on
which the service of such covered individual or adjacent
individual is terminated.
``(b) Adjacent Individuals.--With respect to adjacent individuals,
nothing in this section shall be construed to limit the application of
section 208 of title 18.
``(c) Liability and Immunity.--For purposes of any immunities to
civil liability, any conduct comprising or relating to a prohibited
financial transaction under this section shall be deemed an `unofficial
act,' and beyond the scope of official duties.
``SEC. 13153. CIVIL PENALTIES.
``(a) Civil Action.--The Attorney General may bring a civil action
in any appropriate United States district court against any covered
individual or adjacent individual who violates any provision of section
13152.
``(b) CONTINUING CONDUCT: Any act intended to encourage the sale of
a covered asset, including advertisement, promotion, solicitation,
marketing, or endorsement of the covered asset, constitutes a violation
of this section.
``(c) Civil Penalty.--The court in which any action is brought
under subsection (a) may assess against a covered individual or an
adjacent individual a civil penalty of not more than $250,000.
``(d) Disgorgement.--
``(1) In general.--A covered individual or adjacent
individual shall disgorge to the Treasury of the United States
any profit from a prohibited financial transaction or holding
conducted in violation of this section.
``(2) Retroactive.--Disgorgement shall be required for any
person who violates section 13152 regardless of whether the
issuance of the financial asset transpired prior to the
enactment of this Act.
``(e) Private Right of Action.--Notwithstanding any contrary
provision in any contract relating to the asset, any investor,
competitor, or other private party suffering harm may bring an action
in an appropriate district court of the United States for any
appropriate equitable or declaratory relief, including monetary
damages, with respect to a violation of section 13152.''.
(b) Criminal Penalties.--Chapter 11 of title 18, United States is
amended by adding at the end the following:
``Sec. 228. Prohibited financial transactions
``(a) Benefit From Prohibited Financial Transaction.--Where any
covered individual or adjacent individual knowingly violates any
provision of section 13152 of title 5, and has either--
``(1) caused an aggregate loss of $1,000,000 or more to
members of the public; or
``(2) benefitted financially, through profit, gain, or
advantage, directly or indirectly through family members or
business associates, from the sale, purchase, or distribution
of the covered asset issued in violation of section 13152 of
title 5,
shall be fined under this title or imprisoned for not more than five
years, or both.
``(b) Bribery.--Where any covered individual or adjacent individual
who knowingly violates any provision of section 13152 of title 5, and
directly or indirectly, corruptly demands, seeks, receives, accepts, or
agrees to receive or accept anything of value personally or for any
other person or entity, in return for--
``(1) being influenced in the performance of any official
act;
``(2) being influenced to commit or aid in committing, or
to collude in, or allow, any fraud, or make opportunity for the
commission of any fraud, on the United States; or
``(3) being induced to do or omit to do any act in
violation of the official duty of such official or person,
shall be punished pursuant to section 201(b).
``(c) Insider Trading.--Where any covered individual or adjacent
individual who knowingly violates any provision of section 13152 of
title 5, and violates section 10(b) of the Securities Exchange Act of
1934, shall be subject to punished pursuant to section 201(b).
``(d) Intent.--To incur criminal liability under this section, it
is not required that the covered or adjacent individual intended to
create an investment asset through the sponsorship, issuance, or
promotion of the asset.
``(e) Liability and Immunity.--For purposes of any immunities to
civil and criminal liability, any conduct comprising or relating to a
prohibited financial transaction under this section shall be deemed an
unofficial act and beyond the scope of official duties.
``(f) Definitions.--In this section:
``(1) Adjacent individual.--The term `adjacent individual'
means--
``(A) each officer or employee in the executive
branch holding a Senior Executive Service position (as
defined under section 3132(a)(2));
``(B) each member of a uniformed service whose pay
grade is at or in excess of O-7 under section 201 of
title 37;
``(C) each officer or employee in any other
position determined by the Special Counsel of the
United States, in consultation with the Director of the
Office of Government Ethics, to be of equal
classification to a position described in subparagraph
(A) or (B); or
``(D) the spouse or dependent child of any
individual described in subparagraph (A), (B), or (C).
``(2) Prohibited financial transaction.--
``(A) In general.--The term `prohibited financial
transaction' means the issuance, sponsorship, or
promotion of a covered asset for pecuniary gain.
``(B) Covered asset.--The term `covered asset'
means--
``(i) a security (as such term is defined
in section 3(a) of Securities Exchange Act of
1934);
``(ii) a security future (as such term is
defined in section 3(a) of Securities Exchange
Act of 1934);
``(iii) a commodity (as defined in section
1a of the Commodity Exchange Act);
``(iv) a digital asset which can be sold
for remuneration, including a cryptocurrency, a
meme coin, a token, or a non-fungible token; or
``(v) any derivative, option, warrant,
mutual fund, or exchange-traded fund of (i),
(ii), (iii), or (iv).
``(3) Covered individual.--The term `covered individual'
means--
``(A) the President;
``(B) the Vice President;
``(C) a public official (as defined in section
201(a) of title 18); or
``(D) the spouse or dependent child of any
individual described in subparagraph (A), (B), or (C).
``(4) Dependent child.--The term dependent child has the
meaning given the term in section 13101.''.
<all>
Introduced in House
Sponsor introductory remarks on measure. (CR H893)
Introduced in House
Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Judiciary, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Judiciary, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Judiciary, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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