This week saw many new things in crypto with Bitcoin making headlines by breaking the downtrend and hitting 108K once again. On the other side, Thailand considered approving Bitcoin ETFs, and Italy’s Intesa Sanpaolo bank made a million-dollar investment in BTC. However, the crypto world was shaken by a surprising move from President-elect Donald Trump and his wife, Melania.
Just hours before Trump’s official inauguration, Melania launched a memecoin called MELANIA, sparking widespread debate about the implications of such tokens in an unregulated market. Trump boosted the crypto rally as a Trump effect but Trump’s open publicity of memes are giving a wrong example to the investors who would divert their investment portfolio to celebrity endorsed coins without any real world use case.
Critics Slam Trump’s Token Launch
The memecoin frenzy has drawn mixed reactions. XRP lawyer John Deaton emphasized the urgent need for memecoin regulations, calling them a higher priority than other legislative issues like SAB 121 or tax reform.
Deaton highlighted concerns about the lack of clear rules for speculative tokens, which could lead to unfair market advantages, especially when promoted by influential figures like Trump. He stated, “I stand corrected: it’s Meme Coin Regulation,” stressing the importance of addressing this issue immediately.
The backlash against Trump’s memecoin launch has been swift. Nic Carter, a self-proclaimed Trump supporter, criticized the move as reckless, saying it pushes the boundaries of absurdity. Similarly, U.S. Representative Ro Khanna proposed banning elected officials from owning speculative tokens like memecoins, likening them to gambling and urging SEC regulation. Khanna argued that memecoins are neither neutral money nor platforms for innovation, making them risky for both investors and the broader market.
Adding to the controversy, XRP advocate Bill Morgan raised concerns about how the TRUMP memecoin could impact the ongoing XRP lawsuit. He suggested that Trump’s sudden token launch underscores the urgent need for comprehensive crypto guidelines.
The Need for Clear Crypto Guidelines
As the crypto market grapples with these developments, it’s clear that the push for regulatory clarity is more critical than ever. The memecoin mania, fueled by Trump and Melania’s actions, has highlighted the risks of unregulated tokens and the need for stricter oversight.
While Trump’s administration promises to prioritize crypto, these recent events have cast doubt on whether the focus will be on innovation or speculative hype. The industry now watches closely for signs of regulatory reform amid the ongoing memecoin chaos.
