President Trump's meme coin has weathered a rocky situation before stabilizing after the Securities and Exchange Commission announced on Tuesday that it would create a “crypto task force.”
The president's $TRUMP meme coin fell to around $30 on Monday night after the president did not discuss digital assets, including his campaign promise to create a national Bitcoin reserve, on his first day in office.
The decline followed Sunday's peak of about $70.
However, Acting SEC Chairman Mark Ueda said,Developing a comprehensive and clear regulatory framework Regarding crypto assets. ”
Ueda announced the task force, which will be led by SEC Commissioner Hester Peirce. Mr. Ueda will hold the position temporarily until Paul Atkins' approval process is completed.
According to the SEC, the Cryptocurrency Task Force will work to develop clear rules and address issues related to coin registration.
“I look forward to working with the public to foster a regulatory environment that protects investors, fosters capital formation, promotes market integrity, and supports innovation,” Peirce said. said.
Trump's team did not respond to requests for comment.
Separately, shares of the president's social media company Trump Media plunged 11% on Tuesday.
Bitcoin rose nearly 5% to $106,877 as President Trump appears to have fulfilled his promise to form a crypto-friendly administration.
During the campaign, Trump fought to avoid risks as a cryptocurrency candidate, in contrast to the Biden administration's strict regulation of the industry under former SEC Chairman Gary Gensler.
Over the summer, Trump spoke at the world's largest Bitcoin conference, vowing to make the United States the “crypto capital of the planet.”
He launched the meme coin on Friday, and the first lady immediately issued $MELANIA tokens on Sunday. The token has no economic value and is primarily tied to the couple's popularity.
Trump Coin's market capitalization has soared to about $8 billion since its launch, while First Lady Coin's has jumped to about $800 million. According to CoinMarketCap.
After Melania's coin was introduced, the $TRUMP token lost almost half of its value. Traders said the hit was likely caused by duplication of demand. $TRUMP holders had to unload some of their holdings to purchase Melania's coins.
Experts say the president's volatile meme coin and Trump Media stock (which trades like a meme coin, rising and falling depending on the president's popularity) are undermining confidence in the crypto industry. They have expressed concern that it may cause damage.
Some critics have also accused meme coins of a conflict of interest, as President Trump directly benefits from the tokens and also regulates market policy.
Ryan Serkis, former CEO of cryptocurrency research firm Messari and an outspoken Trump supporter, has called on the president to fire the advisor who recommended the sequential issuance of $TRUMP and $MELANIA coins.
“Fire the person who encouraged Melania’s launch to proceed today,” Serkis said. I wrote it in X's post. “1. They don't know what they're doing. 2. It costs a lot of money and goodwill. 3. They don't have your best interests in mind.”
