How Much of a Crypto Advocate Can a President Be?

On Friday night, while the industry rejoiced, Donald Trump added to his cryptocurrency holdings by launching a digital coin with a picture from his July attempted assassination.

"My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to http://gettrumpmemes.com — Have Fun!" Trump tweeted.

Before long, the price of $TRUMP skyrocketed over 300% by Saturday morning, hitting its highest price yet of $74.50, pushing the memecoin into the top 15 coins by market cap.

The Solana-based memecoin also caused SOL to climb and mark a new all-time high, reaching $292. Leading crypto exchanges Binance and Coinbase have joined in on the fun too, officially listing $TRUMP for their users.

Eric Trump wrote on X, "$Trump is currently the hottest digital meme on earth," adding, "We are just getting started!"

Government watchdogs promptly and immediately denounced the token, characterizing it as the president-elect's most recent immoral action and a chance to exploit his global platform.

Critiques of Trump's family real estate business, including spending by foreign corporations and special interest groups at its properties, persisted during his first term in office.

He has recently promoted non-fungible tokens (NFTs) associated with the Trump brand.

Danielle Brian, executive director of the nonpartisan Project on Government Oversight, noted that a memecoin, which is generally detached from any fundamental business, presents a highly speculative investment for individuals while potentially yielding significant profits for its founders.

Other groups that have voiced their disapproval are the non-profit Campaign Legal Center and the Washington-based Citizens for Responsible Ethics, which sought to sue Trump in his first term for violating constitutional limits on foreign gifts and remuneration.

However, the memecoin is a web of connections that links members of the Trump family to a sector that his government will regulate.

An assassination attempt was nearly prevented at a rally in July, while the token's website, claiming to be the "only official Trump meme," encourages consumers to "get your piece of history" and features images of Trump raising his fist in defiance.

A Trump Organization affiliate, CIC Digital LLC, and a second firm Fight Fight Fight LLC—named after the phrase Trump used when a bullet missed him — own 80% of the virtual asset, which has a three-year lock-up period, after which Trump and his team will be free to sell the assets.

The initial token distribution was 200 million, and according to the website, 1 billion tokens are predicted to reach circulation within three years.

World Liberty Financial is a cryptocurrency platform that Trump and his sons, Donald Trump Jr. and Eric Trump, have been pushing. The Trump family has financial ties to the company.

Much of the Bitcoin industry's wealth went toward Trump's campaign because its members felt unfairly targeted by Biden's government.

The SEC took legal action against Binance, Coinbase Global, and Kraken during Chairman Gary Gensler's tenure, claiming that they promoted assets that should be classified as securities.

The general atmosphere of gloom was replaced in the days leading up to Trump's inauguration.

Digital asset firms donated $10 million to Trump's inauguration, with crypto-advocate lawyer Paul Atkins, who has announced his resignation.

Mark Uyeda temporarily replaces outgoing SEC chair, Gensler, much to the fanfare of the crypto community. Former SEC Commissioner Paul Atkins was nominated by Trump in December to take on the role as the agency's permanent chair.

Under Gensler’s term, the SEC intensified enforcement in the crypto sector, resulting in record fines and high-profile cases, including the imprisonment of FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao.

Gensler described the crypto industry as being “rife with fraud,” a stark contrast to Trump’s crypto-friendly approach.

As his first act, Uyeda announced the launch of a dedicated crypto task force, spearheaded by Commissioner Hester Peirce. Richard Gabbert, Senior Advisor to the Acting Chairman, and Taylor Asher, Senior Policy Advisor to the Acting Chairman, will serve as the Chief of Staff and Chief Policy Advisor for the initiative, respectively.

The task force strives to define clear regulatory boundaries, establish feasible registration processes, design appropriate disclosure frameworks, and allocate enforcement resources more strategically.

Operating within the existing legal framework set by Congress, the task force will also provide technical assistance to lawmakers as they consider changes to these regulations.

Additionally, it will collaborate with other federal agencies, including the Commodity Futures Trading Commission (CFTC), as well as state and international regulatory bodies, ensuring a coordinated approach to crypto regulation.

“I look forward to the efforts of Commissioner Peirce to lead regulatory policy on crypto, which involves multiple SEC divisions and offices,” said Uyeda.

“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” stated Commissioner Peirce.

Elsewhere

Events

BRN Joins Money FM 89.3's 'Money Matters: The Wealth Tracker' (5:15 pm SGT on 23 January)

BRN analyst Valentin Fournier will discuss how the crypto markets are expected to shape up in 2025 on Money FM 89.3's Wealth Tracker segment.

The discussion will explore the dynamic landscape of digital assets in 2024, focusing on key growth periods in March and November and their influence on investor expectations for 2025.

Speaking to host Hongbin Jeong, Fournier will evaluate whether opportunities remain for investing in digital assets, alongside key picks and associated risks for navigating this evolving market.

Tune in here.

Consensus (Hong Kong, 18-20 February)

Consensus is heading to Hong Kong, bringing together the industry’s most important voices from East and West for pivotal conversations and deal-making opportunities.

Consensus Hong Kong convenes global leaders in tech and finance to debate pressing issues, announce key developments and deals, and share their visions for the future.

Use promo code BLOCKDESK20 at checkout for a 20% discount on tickets here.

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