President Trump’s meme coin had a bumpy ride — before stabilizing Tuesday after the Securities and Exchange Commission announced it would launch a “crypto task force.”
The president’s $TRUMP coin fell to around $30 late Monday after the president failed to discuss digital assets on his first day in office, including his campaign promise to create a national Bitcoin reserve.
This decline follows a peak of around $70 on Sunday.
But its token rebounded to $44 as of 4 p.m. Tuesday after interim SEC President Mark Uyeda unveiled a new team tasked with “develop a comprehensive and clear regulatory framework for crypto assets.
While Uyeda announced the creation of a task force, it will be led by SEC Commissioner Hester Peirce. Uyeda temporarily serves in this position until Paul Atkins completes his confirmation process.
The Crypto Working Group will work to develop a clear set of rules and resolve issues regarding coin registration, according to the SEC.
“We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, promotes market integrity and supports innovation,” Peirce said.
Trump’s team did not immediately respond to a request for comment.
Separately, shares of Trump Media, the president’s social media company, fell 11% on Tuesday.
Bitcoin jumped nearly 5% to $106,877 as Trump appeared to make good on his promise to create a crypto-friendly administration.
During his campaign, Trump fought to protect himself as a crypto candidate, in contrast to the Biden administration’s strict regulatory barriers on the industry under former SEC Chairman Gary Gensler.
Over the summer, Trump spoke at the world’s largest Bitcoin conference and pledged to make the United States “the crypto capital of the planet”.
He launched his meme coin on Friday and the first lady quickly followed with a $MELANIA token on Sunday. The tokens have no economic value and are largely linked to the couple’s popularity.
The market cap of Trump’s coin has soared to about $8 billion since its launch, and that of the first lady’s coin has jumped to about $800 million. according to CoinMarketCap.
After the introduction of Melania’s coin, the $TRUMP token lost almost half of its value – a hit that traders said was likely due to overlapping demand. $TRUMP holders had to unload part of their holdings to purchase Melania’s coin.
Experts have expressed concern that the president’s volatile plays and Trump Media stock — which trades much like a coin, rising and plunging in tandem with his favor — could undermine the credibility of the media industry. cryptography.
And some critics have blasted meme coins as a conflict of interest, since Trump directly profits from the tokens and also regulates market policy.
Ryan Selkis, former chief executive of crypto research firm Messari and a staunch Trump supporter, urged the president to fire the advisor who recommended the back-to-back launch of $TRUMP and $MELANIA coins.
“Please fire anyone who recommended launching Melania today,” Selkis wrote in an article on. “1. They don’t know what they’re doing. 2. They cost you a lot of money and goodwill. 3. They don’t think about your best interests.