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While the new president has made no announcement, Consensys founder Joe Lubin pointed out some tell-tale signs, including World Liberty Financial’s recent Ether purchases.
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The Trump family may expand its involvement in the cryptocurrency industry by launching an Ethereum-based business.
This follows the release of several Trump-branded memecoins and Donald Trump’s inauguration as the 47th president of the United States on Jan. 20.
Joseph Lubin, co-founder of Ethereum and founder of Consensys, hinted at the development in a Jan. 21 post on X.
“Based on what I am aware of, the Trump family will build one or more giant businesses on Ethereum,” Lubin wrote. “The Trump administration will do what is good for the USA, and that will involve ETH.”
Lubin suggested that the Trump administration might eventually integrate Ethereum technology into government activities, similar to its current use of internet protocols.
While no official announcement has been made, Lubin pointed to some tell-tale signs, including the recent Ether (ETH) purchases by Trump’s World Liberty Financial (WLFI) decentralized finance (DeFi) platform.
World Liberty Financial, holdings. Source: Arkham Intelligence
The WLFI-labelled wallet has amassed 55,341 Ether worth over $183 million, making Ether the wallet’s largest holding after the Circle’s USD Coin (USDC) stablecoin, Arkham Intelligence data shows.
Related: Trump’s first week in office: Will crypto regulation take a back seat?
Trump to bring crypto, TradFi convergence
The Trump administration may also bring more regulatory clarity, enabling greater integration between traditional finance (TradFi) and the cryptocurrency industry, according to Franklin Templeton CEO Jenny Johnson.
More regulatory clarity could act as a catalyst for market growth, especially developments around crypto-based exchange-traded funds (ETFs) according to Ryan Lee, chief analyst at Bitget Research.
Lee told Cointelegraph:
“This convergence may enhance the legitimacy of cryptocurrencies, paving the way for the development of financial products such as ETFs and tokenized assets. However, it also introduces challenges, including higher compliance costs, heightened security concerns, and the persistent issue of managing market volatility.”
However, regulatory clarity is first needed to offer a “stable framework for crypto businesses” which will ultimately attract more market participants, Lee added.
Related: US court overturns Tornado Cash sanctions in pivotal case for crypto
Trump family memecoins may present new challenges for crypto legislation
Meanwhile, the Trump family’s memecoins may present a new legal gray area for the US securities regulator.
The memecoin launches could bring more regulatory enforcement from the Securities and Exchange Commission, as they set a “precedent that could blur the lines between celebrity, politics and finance,” according to Anndy Lian, author and intergovernmental blockchain expert.
Lian told Cointelegraph:
“The question now is whether the SEC will tighten regulations to curb potential market manipulations or if they will adapt to this new reality by establishing clearer guidelines for such tokens.”
“The risk here is that without stringent oversight, the market could be flooded with similar tokens, potentially leading to volatility, scams or even undermining the credibility of cryptocurrencies,” Lian said.
TRUMP/USD, all-time chart. Source: CoinMarketCap
The Official Trump (TRUMP) token staged an over 10.5% recovery in the 24 hours leading up to 12:31 pm UTC, but remains 44% down from its all-time high of $75.35, recorded on Jan. 19, CoinMarketCap data shows.
Magazine: Trump’s Bitcoin policy lashed in China, deepfake scammers busted: Asia Express
This article first appeared at Cointelegraph.com News
