Trump’s $MELANIA Memecoin Sparks Crypto Controversy – Here’s Why

This week, the crypto world saw significant events. Bitcoin broke its downtrend and surged back to $108K, while Thailand considered approving Bitcoin ETFs and Italy’s Intesa Sanpaolo bank made a notable million-dollar BTC investment. But the biggest shock came from President-elect Donald Trump and his wife, Melania, with a surprising move that has sparked major debate.

Here’s the rundown.

New Memecoins on the Market

Just hours before Trump’s official inauguration, Melania launched a memecoin called MELANIA, causing widespread concern about the implications of such tokens in an unregulated market. Trump’s involvement in promoting the coin helped fuel a crypto rally, now dubbed the “Trump effect.”

However, his open support for meme-based coins, which lack real-world use cases, raises questions about whether investors might shift their focus from strong projects to celebrity-endorsed, speculative tokens.

Regulation Needed for Memecoins, Experts Say

The memecoin trend has led to mixed reactions. XRP lawyer John Deaton called for immediate memecoin regulation, arguing it’s a higher priority than other legislative issues like SAB 121 or tax reform.

Deaton expressed concern about the absence of clear rules for speculative tokens, which could give unfair market advantages, especially when promoted by influential figures like Trump. “I stand corrected: it’s Meme Coin Regulation,” he said, urging action on the matter.

The backlash against Trump’s memecoin move has been quick. Nic Carter, a self-identified Trump supporter, criticized the move as reckless and absurd. U.S. Representative Ro Khanna also spoke out, proposing a ban on elected officials owning speculative tokens like memecoins. He compared them to gambling and called for SEC regulation. Khanna stressed that memecoins don’t function as neutral money or platforms for innovation, making them risky for investors and the broader market.

Could the Memecoin Launch Affect the XRP Lawsuit?

XRP advocate Bill Morgan raised concerns about the TRUMP memecoin’s potential impact on the ongoing XRP lawsuit. He suggested that the sudden launch shows us the need for clear, comprehensive crypto guidelines to prevent market manipulation and protect investors.

Regulation Now More Urgent Than Ever

As the crypto market grapples with these events, the push for regulatory clarity has become more urgent. The memecoin craze, amplified by Trump and Melania’s actions, highlights the risks of unregulated tokens and the growing need for stricter oversight.

While Trump’s administration has promised to prioritize crypto, these recent developments have left many wondering if the focus will be on meaningful innovation or speculative hype. The industry now closely watches for any signs of regulatory reform in response to the ongoing memecoin frenzy.