What Trump’s memecoin release signals for crypto regulations

Update (January 19, 2025 at 4:34 UTC): This article has been updated to reflect that the Trump memecoin has a market cap of over $6 billion.

President-elect Trump launched a memecoin, aptly named TRUMP, on Jan. 17 — drawing both praise and criticism from advocates, with some arguing the token represents a positive regulatory shift in the United States and others warning of one. Constitutional violation.

Consensus attorney Bill Hughes described the incoming Trump administration as a “sea change” in a written statement. The lawyer told Cointelegraph:

“Other countries want a regulatory framework that allows innovation and experimentation here, rather than dictating how this space will change the Internet, business and investment. They want growth, and they see crypto as one way America can get it.”

Hughes added that while the incoming Trump administration is encouraging innovation and experimentation, he doesn't believe the incoming administration will remove all crypto regulations.

“The same law enforcement and national security concerns that existed in the previous administration are going to be found in the Trump administration,” Consensus' attorney said.

Related: How did Donald Trump interact with crypto during his first term?

A lawyer questions the legitimacy of the president-elect's token

Attorney David Lesperance told Cointelegraph that the president's MemCoin launch violates provisions of the United States Constitution designed to prevent foreign influence on US government officials. Lesperance explained:

“Previously, President-elect Trump's launch of his memecoin TRUMP was seen as a clear violation of Article I, Section 9, Section 8 of the United States Constitution.”

“TRUMP appears to violate that clause because it can be easily bought by foreign individuals or governments,” the lawyer said.

However, it remains to be seen whether US Attorney General Pam Bondi will take enforcement action against Trump or memecoin, Lesperance added.

Trump's memecoin sparks trading frenzy.

The Solana-based memecoin launched at the center of the Crypto Ball – a black equality event held in Washington, DC – the weekend before Trump's inauguration on Monday, January 20.

Dealers were initially skeptical of the Tok because there are so many unofficial copies out there now – including one by Martin Shkreli, which bears the DJT mark.

However, memecoin was later confirmed to be legitimate by the Trump family – raising the price of the token.

Since its launch on January 17, the Trump token has risen more than 12,500% and reached a high of $35 on January 18, before falling by nearly 35%.

At the time of writing, TRUMP is trading around $27, down 19% from its all-time high, and has attracted narrative attention in social media and the crypto community.

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