Following the launch of Donald Trump and First Lady Melania’s memecoins, shortly before their inauguration as president, there are those who see a threat to the regulation plans of the bitcoin (BTC) ecosystem.
A report by multinational investment bank TD Cowen explains that the launch of memecoins may have done more harm than good. This, considering that they have the potential to slow progress towards regulatory clarity, very necessary in the ecosystem at this time.
In this way, the team led by Jaret Seiberg, CEO of the company, wrote a note pointing out that the launches can accentuate partisan differences in the US. negatively affecting regulatory proposals for cryptocurrencies that are presented in Congress.
This jeopardizes the ability to move forward with the cryptocurrency bill with the bipartisan support it will need to become law. […] Our view is that anything that complicates Congress’s ability to agree on a bipartisan bill on cryptocurrency market structure is bad for the cryptocurrency sector.
TD Cowen.
Anti-Bitcoin Democrats Speak Out
As CriptoNoticias reported, on the eve of his inauguration the Trump family presented a memecoin called “Official Trump” with the TRUMP symbol. The coin soared in the first few hours inflating its price, then plummeted when the first lady revealed her MELANIA memecoin. Both fell after the inauguration and In general, its trend is downward..
In that sense, it is observed that the Democrats’ investigations could focus on If foreign governments and commercial interests They used symbolic purchases from TRUMP or MELANIA to curry favor with the presidential team.
This is an argument that was already made by the Democratic representative of California, Maxine Waters, who has been one of the first in criticizing memecoinswho fears that large corporate and national donors could have bought off TRUMP, including US adversaries, like Russia and China.
Furthermore, “this meme coin represents the worst of cryptocurrencies and shows why many regulators, advocates and legislators have long been concerned,” Waters wrote. on its official website.
“There is also a worrying lack of transparency around buyers of this currency…Trump has created a way to circumvent national security and anti-corruption laws,” the congresswoman added.
Waters, known for being one of the representatives of the Lower House with a strong anti-Bitcoin stancethinks the sale of the TRUMP coin is another reason to “exercise caution with cryptocurrencies.”
That is why, taking this position into account, Seiberg foresees a worsening of conditions against the ecosystem. He predicts that as Democrats investigate TRUMP trading and Trump family monetization, Republicans will likely defend these activities.
“This partisan division will worsen, as the Trump team is unlikely to cooperate with Democratic investigations,” the analyst says.
All this in a context in which the Republicans They have a majority in both the Lower House and the Senate. Something that many see as an advantage, also ensuring that cryptocurrencies They do not represent an issue that polarizes the parties. That is why they hope that Bitcoin will overcome political differences.
However, other experts point out that the Republican majority is diminished, since there are 217 against 215 in the House of Representatives, which could hinder progress on regulatory proposals.
Among the pending regulations, the FIT21 Act or HR 4763, also known as the Financial Technology and Innovation Act for the 21st Century, which was approved in the House of Representatives last year, is cited. But still has a way to go in the Senate.
Also pending is the bill to create a bitcoin reserve, presented by Senator Cynthia Lummis last July.
