The Solana-based memecoin surged to a market cap of over $6 billion one day after launching but allegedly violates the US Constitution.
President-elect Trump has launched a memecoin, aptly named Official Trump (TRUMP), on Jan. 17 — drawing both praise and criticism from attorneys,
with some arguing that the token signals a positive regulatory shift in the United States and others warning of a Constitutional violation.
In a written statement, Consensys attorney Bill Hughes characterized the incoming Trump administration as a “sea change.” The attorney told Cointelegraph:
“Rather than have other countries dictate how this space transforms the internet, commerce, and investment, they want a regulatory structure that allows creation and experimentation here. They want growth and see crypto as one way the US can achieve it.”
Hughes added that while the incoming Trump administration is encouraging innovation and experimentation, he does not believe the incoming administration is going to do away with all crypto regulations.
“The same law enforcement and national security concerns that existed in the last administration are going to be present in the Trump administration,” the Consensys attorney said.
Attorney questions legality of President-elect’s token
Attorney David Lesperance told Cointelegraph that the President-elect’s memecoin launch violates stipulations in the United States Constitution designed to prevent foreign influence over US government officials. Lesperance explained:
“In the past, President-elect Trump’s launch of his memecoin, TRUMP, would have been seen to be a clear example of a violation of The Foreign Emoluments Clause — Article I, Section 9, Clause 8 — of the United States Constitution.”
“Given that TRUMP can be easily purchased by foreign individuals or governments, this would appear to be a violation of this clause,” the attorney said.
However, it remains to be seen whether or not the incoming Attorney General of the United States, Pam Bondi, takes enforcement action against Trump or the memecoin, Lesperance added.
Trump memecoin inspires trading frenzy
The Solana-based memecoin launched amid The Crypto Ball — a black tie event held in Washington DC — the weekend before Trump’s inauguration on Jan. 20.
Traders were initially skeptical of the token, as many unofficial copycats currently exist — including one from Martin Shkreli, with the ticker symbol DJT.
However, the memecoin was later confirmed as authentic by the Trump family — driving the price of the token higher.
Since launching on Jan. 17, the Trump token surged by over 12,500% and hit a high of approximately $35 on Jan. 18 before falling down by roughly 35%.
At the time of this writing, TRUMP is trading at around $27, down by 19% from the all-time high, and has captured narrative attention on social media and in the crypto community.