Cardano co-founder Charles Hoskinson has gone public with a surprising revelation that 78.5% of incoming US President Donald Trump’s net worth of $29.6 billion is in digital assets, which include the red-hot TRUMP memecoin.
Such a disclosure brings up conversations regarding the future regulations and policies based on the possible influence of Trump’s crypto wealth.
Trump’s Wealth And Crypto
Hoskinson’s disclosure shows that cryptocurrencies are becoming more important in traditional banking. He thinks that the way regulators see digital currencies in the coming months or years will depend 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 nice part of Trump newfound enormous crypto wealth will 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
According to sources, the TRUMP memecoin, which has been on a roll over the past few weeks, plays an important role in Trump’s crypto portfolio. The new crypto has elicited significant attention for being rather speculative and explosive in the market.
Some people hold it against the incoming president that the exponential price increase may be based on political maneuvers and strategic investments in the crypto space.
Within hours of its launch, the meme coin’s market valuation reached $8 billion. According to reports, Trump’s business, CIC Digital LLC, controls 80% of the coin’s supply, making it an attractive business opportunity.
Cryptocurrency And Regulatory ChallengesTrump’s substantial cryptocurrency holdings may make it difficult for regulators to create fair and transparent regulations. According to Hoskinson, the US government may need to modify how it taxes cryptocurrency ownership, especially in regards to asset value and capital gains. As cryptocurrencies develop and make their way into the traditional banking system, this issue is seen to persist.
“The nice part of Trump newfound enormous crypto wealth will 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, according to Morgan, may make the SEC’s legal strategy more difficult, especially in its action against XRP and Ripple.
The @Ripple appeal of Judge Torres finding against Ripple’s defense that there must be a contract or post sale obligations is looking good.
After all the President of the USA thinks a token with no post sale obligations to buyers can be issued and promoted without being… https://t.co/OByrCesd8j
— bill morgan (@Belisarius2020) January 18, 2025
As Trump’s wealth in crypto continues to be a talking point, many experts anticipate that it could lead to changes in how the government handles digital assets. It’s clear that the increasing prominence of cryptocurrencies, driven in part by influential figures like Trump, will have a lasting impact on regulatory frameworks worldwide.
Featured image from WIRED, chart from TradingView
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