US President Donald Trump has sparked controversy after launching his own meme coin and that of his wife Melania, just days before taking office. The move is seen as a cash grab by critics who argue it undermines efforts to legitimize digital assets.
The crypto industry had been eagerly awaiting help from the new president to make cryptocurrency a bigger part of mainstream financial systems. Trump had promised a lighter regulatory touch and picked pro-crypto officials for key government positions.
However, with the launch of his meme coin, many are questioning his commitment to reforming regulations. Meme coins often have no real value but can surge in price if enough people buy them. Popular ones include Dogecoin and Fartcoin.
The launch of Trump’s meme coin drove up its price to over $70 before falling dramatically after Melania launched her own coin, which is now trading at around $4. The move has sowed doubt among crypto fans who worry that the president’s association with meme coins will make it harder for him to enact industry-friendly reforms.
Trump’s actions have also raised concerns about his ability to regulate cryptocurrency effectively. “Now, on the cusp of getting some liberalization of crypto regulations in this country, the main thing people are thinking about crypto is, ‘Oh, it’s just a casino for these meme coins,'” said Nic Carter, a Trump supporter and partner at Castle Island Ventures.
The Trump family business has released an ethics agreement that prohibits the president from day-to-day decision making at the Trump Organization when he’s president. However, critics argue that the launch of meme coins is still a concerning move that undermines efforts to legitimize cryptocurrency.
Source: https://apnews.com/article/trump-crypto-meme-coin-regulation-c624272aead106ff7ca04419e68949d7