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ARTICLE · 29 JANUARY 2025

President Trump Launched A Memecoin: Much Ado About Nothing?

Gesmer Updegrove LLP
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The launch of President Donald Trump's $TRUMP cryptocurrency token has sparked controversy, with critics framing it as a regulatory and ethical quagmire.

United StatesTechnology
Braeden Anderson
Braeden Anderson

The launch of President Donald Trump's $TRUMP cryptocurrency token has sparked controversy, with critics framing it as a regulatory and ethical quagmire. However, when analyzed through established legal frameworks, these attacks seem more like political theater than substantive concerns. While $TRUMP has undoubtedly captured headlines and stirred debate, the reality is that this token likely does not meet the legal definition of a security. Without significant changes to how it is marketed or managed, critics' arguments appear to lack the necessary substance to stick.

The Framework for Digital Asset Regulation

The question of whether $TRUMP qualifies as a security under U.S. federal securities laws centers on the Howey Test, a U.S. Supreme Court standard that determines whether an instrument constitutes an "investment contract" and is, therefore, subject to securities regulation. For a digital asset to meet this definition, it must satisfy the following elements:

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