What Trump, wife Melania’s ‘meme coins’ signal about crypto regulation in the US | Business News
Crypto markets were rocked by the launch of two new his and her ‘meme coins’, by new United States President Donald Trump, and his wife Melania – coinciding with the administration’s signal towards a favourable regulatory environment for cryptocurrencies, while raising ethical concerns.
On Friday night, Trump launched a meme coin by his own name, which surged from less than $10 on Saturday morning to as high as $74.59 before giving up some of its gains on Monday. At the time of publishing, the growth was somewhat moderated, with the cryptocurrency trading at around $35, as per CoinMarketCap. Trump’s meme coin had a market cap of over $7 billion, crashing from a high of more than $12 billion.
The moderation in Trump’s meme coin coincided with a similar coin launched by his wife Melania. The meme coin’s market cap was more than $700 million, which fell from a high of more than $2 billion.
Meme coins are highly volatile cryptocurrency inspired by popular internet or cultural trends. They carry no intrinsic value but can soar, or plummet, in price. They are generally seen as indicators of retail investors’ interest in cryptocurrency. It is usually a marker of investors’ risk appetite at any given point in time. Surging memecoin values generally indicated that retail investors are participating in the market.
World Liberty Financial, a separate Trump-linked crypto project, also announced on Monday that it had completed an initial token sale, raising $300 million, and would look to issue additional tokens, Reuters reported.
The actions of the first couple raise serious ethics concerns over the regulation of cryptocurrencies in the US, with the Trump administration having previously received support from the industry’s evangelists, and his pick to lead the Securities and Exchange Commission who has been a long-time crypto advocate.
Crypto under Trump
Investors had predicted that Bitcoin could hit that mark if Trump were to be elected, since his entire campaign featured pro-crypto messaging, among other things. Having Musk – who has been a long time advocate for cryptocurrency — as a key adviser could further bolster investors’ belief in bitcoin, and other digital virtual assets, even if concerns around conflict of interest remain.
One key Trump pick is Paul Atkins, to lead the Securities and Exchange Commission (SEC) that regulates cryptocurrency. Atkins is widely considered a cryptocurrency advocate.
Under the Joe Biden administration, the SEC head Gary Gensler had cracked down on the crypto industry. The SEC sued companies for fraud and money laundering and assessed billions of dollars in fines.
Trump, once a crypto sceptic, turned around in the run-up to the 2024 Presidential elections. His campaign featured positive messaging around cryptocurrencies, such as the announcement of bitcoin as a strategic reserve, and favourable energy policies for crypto miners. His 180-turn on crypto was widely viewed as a way to attract younger male voters.
Bitcoin’s surge
Trump’s victory also saw Bitcoin breach the $100,000 mark for the first time, amid expectations that some of his administrative picks would show more regulatory leniency towards cryptocurrency than their predecessors.
Bitcoin crossed $100,000 for the first time on Wednesday (December 4), thanks to Donald Trump’s reentry to the White House and the expectation that some of his administrative picks would show more regulatory lenience towards cryptocurrency than their predecessors.
It first saw a sharp increase after Trump chose tech billionaire Elon Musk to lead the new Department of Government Efficiency (DOGE). The acronym refers to Musk’s favourite cryptocurrency Dogecoin. Investors had predicted bitcoin could hit that mark if Trump were to be elected, since his entire campaign featured pro-crypto messaging.
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