New RegulationsExempt Trump Family’s Crypto Ventures from SEC Oversight

On Tuesday, the primary financial regulator in the United States, the Securities and Exchange Commission (SEC), introduced new rules aimed at the cryptocurrency sector, potentially lightening regulatory burdens. Some insiders suggest these changes could favor businesses associated with the Trump family.

According to the SEC’s newly released guidelines, the cryptocurrency industry is tasked with addressing the longstanding debate over what constitutes a security. This classification has significant implications for regulation. SEC Chairman Paul Atkins has referred to this new framework as a “token taxonomy.” In collaboration with the Commodity Futures Trading Commission (CFTC), the guidelines categorize most cryptoassets as commodities, collectibles, or “digital tools,” thus exempting them from the SEC’s more demanding oversight and disclosure requirements. Only blockchain representations of existing securities, like stocks and bonds, will still be classified as securities.

Discussions with legal professionals, lobbyists, and crypto entrepreneurs indicate that these new regulations could considerably alleviate current compliance and disclosure obligations within the crypto industry. This shift might ignite further economic interest in the crypto sector, potentially benefiting various projects linked to the Trump family.

As Todd Baker, a senior fellow at Columbia Business School and Columbia Law School, observed, “This latest interpretation aligns with other actions by the Trump administration aimed at promoting the growth of for-profit cryptocurrencies, which currently face minimal federal oversight.”

During Donald Trump’s second term, the SEC adjusted its previously stricter approach, favoring more relaxed regulations compared to the positions held during both President Joe Biden’s and Trump’s initial term.

Atkins remarked in a speech at the Blockchain Summit in Washington, D.C., that the SEC is “no longer a ‘committee on securities and everything else.'” His comments were well-received by the audience and the crypto community at large. Cody Carbone, the CEO of the Digital Chamber, remarked that the SEC and CFTC’s announcements reflect a comprehensive understanding of digital assets and represent a significant step toward balancing innovation with consumer protection.

Atkins explained that the guidelines serve as a “bridge” while Congress deliberates on a more unified legislative approach. However, the Clarity Act—a bill currently navigating through Congress—faces obstacles amid ongoing disputes between cryptocurrency firms and banking institutions. Summer Mersinger, head of the Blockchain Association, stated that while the coordination between these agencies would be beneficial in the short term, lasting clarity would come from legislative action.

Trump Family’s Crypto Ventures and New Regulatory Landscape

The Trump family’s cryptocurrency initiatives fit neatly within categories that are now exempt from SEC scrutiny under Atkins’ Token Taxonomy. For instance, they’ve promoted “meme coins,” cryptocurrencies typically viewed as speculative. Ahead of his anticipated second inauguration in January 2025, Trump introduced a meme coin named $Trump. In May 2025, he hosted over 200 significant purchasers of $Trump tokens, including a private reception for 25 individuals who collectively spent around $148 million. Melania Trump also ventured into this space with her own meme coin, $Melania.

Gracie Chen, the CEO of Bitget, a notable cryptocurrency exchange, indicated that the more specific classifications could attract institutional investors to cryptocurrencies like memecoins, which were previously perceived as high-risk due to regulatory uncertainties.

Baker added that these guidelines affirm that other tokens associated with Trump are not securities, such as the USD1 stable coin—tied to the US dollar—and $WLFI, a governance token allowing holders to influence crypto project developments. Both were issued by World Liberty Financial, a crypto company co-founded by members of the Trump family in 2024. Following the issuance of the $WLFI token in September 2025, reports suggested the Trump family’s wealth skyrocketed by $5 billion. Allegations have arisen of a connection between the family’s business and Abu Dhabi royalty, who reportedly acquired a considerable stake in World Liberty Financial, sparking concerns about potential corruption.

World Liberty Financial has expressed its commitment to compliance, stating that it adheres to existing regulations while noting it did not engage with the SEC or CFTC regarding these new rules before their release.

Legal expert Steven Aschettino highlighted that the new classifications will label meme coins as “digital collectibles,” thereby exempting them from SEC and CFTC oversight. He pointed out that this creates a gap, void of both forced disclosures and anti-fraud protections typically associated with securities laws, which deserves public scrutiny.

While Atkins’ “bridging” rules could extend beyond Trump’s presidency, Aschettino acknowledged that the influence of cryptocurrency’s growth on financial markets may be challenging to undo, even with a shift in regulatory policy in the future.