In January 2025, US President Donald Trump launched two memecoins—Official Trump (TRUMP) and Official Melania (MELANIA)—which have since experienced significant fluctuations in value. TRUMP peaked at $72, but by the time of writing, it had fallen to around $37, resulting in losses for nearly 570,000 wallets. Analysts believe the launch will likely lead to lawsuits, particularly from dissatisfied investors. Crypto lawyer Aaron Brogan notes that memecoins exist in a legal grey area, as they often do not qualify as securities under US law. Nevertheless, lawsuits are anticipated, with the likelihood of civil actions from Democrats or unhappy investors within six weeks of the launch. Despite efforts to shield the memecoins from legal ramifications, concerns about conflicts of interest and the implications of Trump monetizing his political influence are being raised. Historically, presidents cannot be legally pursued for actions during their term; however, pre-presidential actions could be subject to legal scrutiny. This unprecedented engagement of a political leader in the cryptocurrency sphere could reshape public sentiment and regulatory discussions around memecoins.

Source 🔗