Cardano co-founder Charles Hoskinson has released a surprising revelation that 78.5% of new US President Donald Trump’s $29.6 billion net worth is made up of digital assets, which includes memecoin burning TRUMP.
Such disclosure sparks discussions about 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 increasingly important in traditional banking. He believes how regulators view digital currencies in the coming months or years will depend on Trump’s involvement in crypto. This comes at a time when politicians and banks are paying more attention to the crypto market.
The interesting aspect of Trump’s enormous new crypto wealth will be the changes to the IRS’s interpretation of capital gains and fair market value of crypto. pic.twitter.com/j06WwE3oXA
– Charles Hoskinson (@IOHK_Charles) January 18, 2025
Impact of TRUMP Memecoin
According to sources, the TRUMP memecoin, which has been booming in recent weeks, plays an important role in Trump’s crypto portfolio. The new cryptocurrency has attracted particular attention due to its rather speculative and explosive nature in the market.
Some people criticize the new president that the exponential price increase may be based on political maneuvering and strategic investments in the crypto space.
Within hours of its launch, the market valuation of the meme coin reached $8 billion. Trump’s company, CIC Digital LLC, reportedly controls 80% of the coin supply, making it an attractive business opportunity.
Cryptocurrency and regulatory challenges
Trump’s significant cryptocurrency holdings could make it more difficult for regulators to create fair and transparent regulations. According to Hoskinson, the U.S. government may need to change how it taxes cryptocurrency ownership, particularly regarding asset values and capital gains. As cryptocurrencies grow and enter the traditional banking system, this problem appears to persist.
“The interesting part of Trump’s enormous new crypto wealth will be changes in the IRS’s interpretation of capital gains and fair market value of crypto,” Hoskinson said.
Ripple attorney Bill Morgan also shared his thoughts on how Trump’s TRUMP memecoin advocacy could impact current legal and regulatory disputes. According to Morgan, Trump’s promotion of a speculative digital asset could make the SEC’s legal strategy more difficult, particularly in its action against XRP and Ripple.
THE @Ripple Judge Torres’ appeal concluding against Ripple’s defense that there must be a contract or obligations after the sale is shaping up well.
After all, the President of the United States believes that a token with no post-sale obligations to buyers can be issued and promoted without being…
– Bill Morgan (@Belisarius2020) January 18, 2025
The Future of Crypto Regulation
As Trump’s crypto wealth continues to be a topic of discussion, many experts predict that it could lead to changes in how the government manages digital assets. It is clear that the growing prominence of cryptocurrencies, driven in part by influential figures like Trump, will have a lasting impact on regulatory frameworks around the world.
Featured image from WIRED, chart from TradingView
