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Where Presidential Power Meets Digital Finance: A Constitutional Crisis in the Making?
In an unprecedented move that has sent shockwaves through both political and financial circles, President-elect Donald Trump launched the $TRUMP cryptocurrency just four days before his second inauguration.
Within 48 hours, the meme coin's value tripled from $20 to $70 per token, catalyzing over $24 billion in trading volume and pushing its market capitalization past $14 billion. While crypto enthusiasts celebrate this as a watershed moment for digital assets, the launch raises profound legal questions about the intersection of presidential power, securities law, and market integrity. At stake is not just the future of cryptocurrency regulation, but fundamental questions about the boundaries between political office and private enterprise in the digital age.
A screenshot of the GetTrump coin from the homepage.
GetTrump, "Homepage". GetTrump, 2025,
Securities Law Considerations
The $TRUMP meme coin's structure, particularly with 80% ownership concentrated in Trump-owned CIC Digital LLC, raises critical questions under the well-known Howey Test, in the Supreme Court’s landmark decision for determining whether an asset constitutes a security. Despite the disclaimer attempting to position the tokens as "expressions of support" rather than securities, several factors suggest potential classification as a security:
Investment of Money: The public's purchase of tokens with fiat currency or other cryptocurrencies clearly satisfies this first prong.
Common Enterprise: The concentration of 80% ownership in Trump-affiliated entities (CIC Digital LLC and Fight Fight Fight LLC), combined with the planned expansion from 200 million to 1 billion tokens over three years, suggests common enterprise where investors' fortunes are intertwined with the promoters' efforts.
Expectation of Profits from Others' Efforts: Several factors demonstrate this critical element:
The timing of launch just four days before inauguration suggests profits tied to Trump's political position
The dramatic price movement ($20 to $70) indicates speculative investment expectations
The Trump Organization's active management of token supply and marketing efforts
The disclaimer's attempt to characterize the token as "not intended to be... an investment opportunity" appears insufficient given the substance-over-form approach consistently applied by courts and regulators to crypto assets.
