22 Jan, 2025

What to Know About Trump Cryptocurrency Meme Coins

President Trump has launched a cryptocurrency coin that is drawing a sharp eye from experts as it yo-yos in value in its opening days of trading.The official "meme coin," known as $TRUMP, was launched on Friday for nearly $6.50 and rose to a high of $73 on Sunday. Hours after his inauguration, it had dropped below $40. It's market cap on Monday was about $7.6 billion, according to CoinGecko.First lady Melania Trump on Sunday also launched a meme coin, $MELANIA, at nearly $7. That coin also jumped in early trading, nudging above $13 at its height, before dropping below $5 as of Monday afternoon, according to CoinGecko."My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!," Trump wrote in a post on X, telling supporters to "Have Fun!"Here is what you should know about the coins and cryptocurrency's future under the Trump administration.What is a meme coin?A meme coin is a type of cryptocurrency that is inspired by a meme or another internet trend. One of the most well known is dogecoin, which was created as a joke and features a dog as its mascot. It became popular in 2013 and again in 2021.Cryptocurrencies are unpredictable, volatile, and have been exploited by criminals to engage in fraud.The cryptocurrency exchange FTX collapsed in 2022 and its founder, Sam Bankman-Fried was sentenced to 25 years in prison for his crimes.Trump's meme coin is marketed with an image of the president holding up his fist with the words, "FIGHT FIGHT FIGHT" – a phrase he has dubbed "a battle cry" after surviving an assassination attempt in July 2024. The first lady's coin features a black and white photo of Melania smiling with her hands clasped in front of her face.What is crypto's future under the new Trump administration?In the past, Trump has criticized cryptocurrency, calling it a "scam" and "potentially a disaster waiting to happen" during an interview with FOX Business in 2021. But he has since embraced the sector and on the campaign trail promised to make the U.S. "the crypto capital of the planet" by ending previous enforcement actions and bringing in friendly regulators.The Trump family also has financial interests in World Liberty Financial, a crypto-related company.There have been questions surrounding Trump's meme coin and potential conflicts of interest given that Trump has promised to promote the crypto industry as president.Trump has chosen Paul Atkins, former U.S. Securities and Exchange Commissioner and CEO of a consulting firm with crypto clients to lead the SEC. Atkins is also a supporter of cryptocurrencies and has expressed reservations about the SEC's enforcement actions against the domestic crypto industry. David Sacks, a venture capitalist, has also been appointed by Trump as the country's first crypto and artificial intelligence czar.A GOP-controlled Congress could also help bolster cryptocurrency. Republican Arkansas Rep. French Hill, chair of the House Financial Services Committee, has pushed for measures to help develop crypto. There is skepticism about congressional warmth toward cryptocurrency, including from digital assets expert Carol Alexander, who called it "a step in the wrong direction.""We have to regulate the space," Alexander, a professor at the University of Sussex, previously told NPR.Preston Byrne, a cryptocurrency lawyer, said Trump's involvement in cryptocurrency raises legal questions and could have a negative impact if it is not successful."Trump himself will also have to contend with the fact that his political fortunes will be tied to an asset that the market, and not the man, controls," Byrne wrote in a post on Sunday. "If $TRUMP crashes it might affect his own political clout in DC."

17 Jan, 2025

What the SEC Leadership Change Means for Litecoin and Solana ETFs

The cryptocurrency ETF market is in flux as the SEC leadership transitions, significantly impacting the prospects of Litecoin and Solana ETFs. With Gary Gensler stepping down as SEC Chair on January 20, the regulatory approach could shift dramatically, affecting approvals for these and other digital asset products.Litecoin ETF Progress and Key DevelopmentsLitecoin’s ETF application has gained substantial momentum, with Nasdaq recently submitting a 19b-4 filing on behalf of Canary Capital. This filing is pivotal, marking a significant step toward regulatory approval. Key stakeholders have identified US Bancorp Fund Services as the ETF’s administrator, while Coinbase Custody Trust Company is slated to manage Litecoin’s holdings.Bloomberg analyst Eric Balchunas highlighted the positive trajectory for Litecoin, citing feedback from the SEC on its S-1 filing. Canary Capital’s consistent engagement with the SEC, including updates to its initial October filing, underscores its commitment to securing approval. Market sentiment suggests that Litecoin is a strong contender for the next cryptocurrency to achieve ETF status.Solana Faces Regulatory ChallengesSolana’s path to ETF approval has been less favorable. Reports from Fox journalist Eleanor Terrett revealed that Solana’s ETF application faced rejection during Gensler’s tenure, with its 19b-4 filing turned down. This setback highlights the challenges for cryptocurrencies navigating the SEC’s rigorous standards.While Solana’s prospects remain uncertain, the upcoming SEC leadership change offers a potential opportunity for reevaluation. The crypto community is hopeful that the incoming chair will adopt a more inclusive approach, reshaping the regulatory landscape for ETFs.Broader Implications of SEC Leadership TransitionThe impending inauguration of a pro-crypto administration and the anticipated nomination of Paul Atkins as the next SEC Chair could usher in a friendlier regulatory environment. This shift may accelerate approvals for various ETFs, including those for Litecoin, XRP, and Hedera.As asset managers like Bitwise, WisdomTree, and VanEck compete for ETF listings, the crypto industry anticipates 2025 as a potential breakthrough year. The increasing receptiveness of U.S. regulators toward cryptocurrency underscores the growing institutional interest in digital assets.