President Trump’s meme coin went on a bumpy ride over — before steadying Tuesday after the Securities and Exchange Commission announced it would launch a “crypto task force.”
The president’s $TRUMP meme coin sank to around $30 Monday night after the president failed to discuss digital assets on his first day in office, including his campaign pledge to create a national Bitcoin reserve.
The drop followed a peak of around $70 on Sunday.
But his token bounced back to reach $44 by 4 p.m. Tuesday after SEC acting Chair Mark Uyeda unveiled a new team tasked with “developing a comprehensive and clear regulatory framework for crypto assets.”
While Uyeda announced the task force, it will be led by SEC Commissioner Hester Peirce. Uyeda is temporarily holding the position until Paul Atkins completes his confirmation process.
The crypto task force will work to develop a clear set of rules and address issues concerning the registration of coins, 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, fosters market integrity and supports innovation,” Peirce said.
Trump’s team did not immediately respond to a request for comment.
Separately, shares in Trump Media, the president’s social media company, tanked 11% on Tuesday.
Bitcoin jumped nearly 5% to $106,877 as Trump appeared to deliver on his promise to create a crypto-friendly administration.
During his campaign, Trump fought to hedge himself as the crypto candidate, in contrast to the Biden administration’s strict regulatory hurdles on the industry under former SEC Chair Gary Gensler.
Over the summer, Trump spoke at the world’s largest Bitcoin conference and vowed to make the US “the crypto capital of the planet.”
On Friday, he launched his meme coin and the first lady quickly followed it up with a $MELANIA token on Sunday. The tokens have no economic value, and are largely tied to the couple’s popularity.
The market cap of Trump’s coin has soared to around $8 billion since its launch, and the first lady’s coin has jumped to about $800 million, according to CoinMarketCap.
After Melania’s coin was introduced, the $TRUMP token lost nearly half of its value – a hit traders said was likely caused by overlapping demand. $TRUMP holders had to unload some of their holdings to buy Melania’s coin.
Experts have raised concerns that the president’s volatile meme coins and Trump Media stock – which has traded much like a meme coin, spiking and dipping alongside his favorability – could undermine the crypto industry’s credibility.
And some critics have lambasted the meme coins as a conflict of interest, since Trump directly benefits from the tokens and also regulates market policy.
Ryan Selkis, the former chief executive of crypto research firm Messari and an outspoken Trump supporter, urged the president to fire the adviser who recommended the back-to-back launch of the $TRUMP and $MELANIA coins.
“Please fire whoever recommended going forward with the Melania launch today,” Selkis wrote in a post on X. “1. They don’t know what they’re doing. 2. They cost you a lot of $ and goodwill. 3. They don’t have your interests in mind.”
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