S. 1620: Modern Emoluments and Malfeasance Enforcement Act

This bill, titled the **Modern Emoluments and Malfeasance Enforcement Act** or **MEME Act**, aims to amend existing laws regarding prohibited financial transactions involving public officials in the United States. The intention is to prevent financial exploitation by those in public office, ensuring they do not misuse their positions for personal financial gain.

Key Provisions of the Bill

The bill includes several critical components:

• Financial Misconduct Prevention: It states that federally elected officials and other public office holders should not use their positions to benefit financially. This includes prohibiting the issuance, sponsorship, or promotion of financial instruments that could lead to conflicts of interest or corruption.
• Definitions: The bill defines key terms, such as "covered asset," which includes securities, commodities, digital assets (like cryptocurrencies), and derivatives. It also establishes what constitutes a "covered individual," which includes the President, Vice President, and public officials, along with their immediate family members.
• Prohibited Transactions: The act prohibits covered individuals from engaging in certain financial transactions during their term of service, within 180 days before starting, or within 180 days after leaving office. This aims to limit potential exploitation of public office for personal profit.
• Civil and Criminal Penalties: The bill introduces civil penalties for violations, allowing the Attorney General to take legal action against individuals who engage in prohibited transactions. Fines can reach up to $250,000, and offenders may be required to return any profits made through illegal activities. For serious violations, including those causing significant financial loss or involving bribery or insider trading, criminal penalties may also apply, with potential prison sentences up to 15 years.

Enforcement and Oversight

The legislation would empower the Attorney General to enforce these provisions and pursue civil actions against violators. Additionally, certain transactions could also be categorized as unofficial acts, limiting protections against civil and criminal liability for illegal conduct related to prohibited financial transactions.

Overall Goal

The main objective of the MEME Act is to maintain the integrity of public office by preventing financial conflicts and enhancing transparency in the financial dealings of public officials. By establishing clearer guidelines and stronger penalties, the bill seeks to uphold public trust in government operations.

Relevant Companies

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