Cardano co-founder Charles Hoskinson has gone public with a surprising revelation that 78.5% of incoming US President Donald Trump’s net value of $29.6 billion is in digital assets, which include the red-hot TRUMP memecoin.
Such a disclosure brings up conversations regarding the long run regulations and policies based on the possible influence of Trump’s crypto wealth.
Trump’s Wealth And Crypto
Hoskinson’s disclosure shows that cryptocurrencies have gotten more necessary in traditional banking. He thinks that the best way regulators see digital currencies in the approaching months or years will rely on how involved Trump is in crypto. This comes at a time when politicians and banks are paying more attention to the crypto market.
The great a part of Trump newfound enormous crypto wealth might be changes to the IRS’s interpretation of capital gains and fair market value of crypto https://t.co/aH5Wleh4nm pic.twitter.com/j06WwE3oXA
— Charles Hoskinson (@IOHK_Charles) January 18, 2025
Impact Of The TRUMP Memecoin
In line with sources, the TRUMP memecoin, which has been on a roll over the past few weeks, plays a vital role in Trump’s crypto portfolio. The brand new crypto has elicited significant attention for being fairly speculative and explosive out there.
Some people hold it against the incoming president that the exponential price increase could also be based on political maneuvers and strategic investments within the crypto space.
Inside hours of its launch, the meme coin’s market valuation reached $8 billion. In line with reports, Trump’s business, CIC Digital LLC, controls 80% of the coin’s supply, making it a horny business opportunity.
Cryptocurrency And Regulatory Challenges
Trump’s substantial cryptocurrency holdings may make it difficult for regulators to create fair and transparent regulations. In line with Hoskinson, the US government may have to switch the way it taxes cryptocurrency ownership, especially with regard to asset value and capital gains. As cryptocurrencies develop and make their way into the normal banking system, this issue is seen to persist.
“The great a part of Trump newfound enormous crypto wealth might be changes to the IRS’s interpretation of capital gains and fair market value of crypto,” Hoskinson said.
Bill Morgan, a lawyer for Ripple, has also offered his thoughts on how Trump’s advocacy of the TRUMP memecoin may impact current legal and regulatory disputes. Trump’s promotion of a speculative digital asset, in line with Morgan, may make the SEC’s legal strategy harder, especially in its motion against XRP and Ripple.
The @Ripple appeal of Judge Torres finding against Ripple’s defense that there have to be a contract or post sale obligations is looking good.
In spite of everything the President of the USA thinks a token with no post sale obligations to buyers could be issued and promoted without being… https://t.co/OByrCesd8j
— bill morgan (@Belisarius2020) January 18, 2025
The Future Of Crypto Regulations
As Trump’s wealth in crypto continues to be a talking point, many experts anticipate that it may lead to changes in how the federal government handles digital assets. It’s clear that the increasing prominence of cryptocurrencies, driven partly by influential figures like Trump, could have an enduring impact on regulatory frameworks worldwide.
Featured image from WIRED, chart from TradingView