Cardano co-founder Charles Hoskinson has gone public with a surprising revelation that 78.5% Incoming US President Donald Trump is worth $29.6 billion in digital assets, including the red-hot Trump Memecoin.
Such a revelation brings up the conversation regarding future regulations and policies based on the potential impact of Trump’s crypto wealth.
Trump’s wealth and crypto
Hoskinson’s revelation shows that cryptocurrencies are becoming more important in traditional banking. He thinks the way regulators view digital currencies in the coming months or years will depend on how involved Trump is in crypto. This comes at a time when politicians and banks are paying more attention to the crypto market.
A good part of Trump’s newfound massive crypto wealth will be changes in the IRS’s interpretation of capital gains and the fair market value of crypto. https://t.co/aH5Wleh4nm pic.twitter.com/j06WwE3oXA
— Charles Hoskinson (@IOHK_Charles) January 18, 2025
Impact of Trump Memecoin
According to sources, the TRUMP memecoinWhich has been on a roll for the past few weeks, playing an important role in Trump’s crypto portfolio. The new crypto has attracted significant attention for being speculative and explosive in the market.
Some argue against the incoming president that the exponential price increase could be based on political maneuvers and strategic investments in the crypto space.
Within hours of its launch, Meme Coin’s market cap reached $8 billion. According to reports, Trump’s business, CIC Digital LLC, controls 80% of the coin’s supply, making it an attractive business opportunity.
Cryptocurrencies and Regulatory Challenges
Trump’s significant cryptocurrency holdings could make it difficult for regulators to create fair and transparent rules. According to Hoskinson, the US government may need to revise how it taxes cryptocurrency ownership, particularly in relation to asset value and capital gains. As cryptocurrencies evolve and make their way into the traditional banking system, this issue persists.
“A good part of Trump’s newfound massive crypto wealth will be changes in the IRS’s interpretation of capital gains and the fair market value of crypto,” Hoskinson said.
Ripple’s lawyer, Bill Morgan, also offered his thoughts on how Trump’s advocacy of MemeCoin could affect 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, especially in its action against XRP and Ripple.
The @ripple Judge Torres appealed against Ripple’s defense finding that there must be a contract or post-sale obligations sounding good.
After all the President of the USA thinks that a token with no post sale obligations can be issued to buyers and without publicizing… https://t.co/OByrCesd8j
— Bill Morgan (@Belisarius2020) January 18, 2025
The future of crypto regulations
Like Trump’s Wealth in crypto Continues to be a talking point, with many experts predicting it could lead to changes in the way the government handles digital assets. It is clear that the increasing prominence of cryptocurrency, driven by influential figures like Trump, will have a lasting impact on regulatory frameworks around the world.
Featured image from WIRED, chart from TradingView
