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President Donald Trump launched a meme coin days before taking office, quickly reaching a $70 billion market value.
Ethics experts warn about potential conflicts with his upcoming regulatory powers over the crypto industry.
Trump introduced the $TRUMP token on Friday through his company affiliate CIC Digital, which owns 80% of the coins under a three-year vesting schedule. The token is marketed with a picture of Trump’s assassination attempt in July. Within 60 hours of launch, its price surged from $10 to $70 before settling around $60.
“I believe it is very dangerous to have the people who are supposed to oversee regulating financial instruments investing in them at the same time,” said Richard Painter, former chief ethics lawyer in the George W. Bush administration. “There’s no precedent for a head of state to launch a personal cryptocurrency.”
Critics point out that Trump’s policies could directly affect his crypto holdings. The president-elect has promised to make the U.S. the “crypto capital of the world” by easing regulations on digital assets. Any pro-crypto policies he implements could boost the value of his holdings.
Anthony Scaramucci, a former Trump official turned critic, highlighted the risks. “Now anyone in the world can essentially deposit money into the bank account of the president of the United States with just a few clicks,” he said.
The Trump Organization said that Trump would not be involved in “day-to-day” business decisions during his term. However, ethics experts say this arrangement falls short of previous presidents, who used blind trusts to avoid conflicts of interest.
First Lady Melania Trump further stoked the controversy by launching her own meme coin, valued at $1.7 billion, on Sunday. The websites of both coins claim they are “not intended to be” investment opportunities.
California Representative Ro Khanna called for new restrictions, saying elected officials “must be barred from having meme coins by law.” Khanna described them as “highly speculative” like gambling.
Trump’s growing crypto influence
From an individual who once called crypto “a scam,” Trump has transformed into a crypto advocate. His stance shifted during the 2024 campaign when he accepted digital assets as donations for his candidacy. The Trump family launched World Liberty Financial in September, a crypto project that has raised $300 million and secured 75% of its revenue.
Trump’s venture comes as he prepares to reshape crypto regulation. He has appointed several crypto supporters to key positions, including David Sacks as AI and crypto czar and Howard Lutnick, who supports the cryptocurrency company Tether, as Commerce Secretary.
Bitcoin’s price reflected market optimism about Trump’s pro-crypto stance. It briefly touched a record high of $109,071 on inauguration day.
CleansparK CEO Zach Bradford, who met with Lutnick at Friday’s Crypto Ball, notes the administration’s ambitious plans. “We talked about bitcoin mining and how bitcoin can be a central point of commerce,” Bradford told CNBC on Sunday. “It’s a positive revenue generator from a net production perspective.”
Tracy Hoyos-López, a former California prosecutor who helped plan the inaugural crypto celebrations, offered a stark warning to crypto skeptics while Snoop Dogg performed at the Crypto Ball: “Don’t mess with crypto. Our event is a symbol of who we are in the world.”
