US President-elect Donald Trump took an unprecedented step: four days before his inauguration, he launched his own cryptocurrency, TRUMP.. This caused shock in both political and financial circles.

Forbes experts fear the digital token represents a " Given the timing of the asset's release and the concentration of tokens in Trump-related companies, analysts have wondered whether the 47th president really supports crypto innovation or is he simply seeking to monetize his presidency.

Within 48 hours of its appearance, the value of the TRUMP meme coin increased 3.5 times - from $20 to $70, which increased trading volume by more than $24 billion and its market capitalization by more than $14 billion. But many aspects of the asset's structure raise concerns about classifying it as a security:.

And although the project description emphasizes that the TRUMP token is not a security, but an expression of support for the elected president, the US Supreme Court has traditionally taken the “substance over form” position.. In addition, the Securities and Exchange Commission (SEC) has repeatedly emphasized that this does not change the economic realities of the investment scheme.

However, Trump has already announced upcoming changes in the SEC - crypto-optimist Paul Atkins, known for his critical position towards cryptocurrencies, will replace Gary Gansler as chairman of the commission.. He already worked at the SEC from 2002-2008 and is remembered for his support for lighter regulation of cryptocurrencies, so he should lead Trump's planned transformation of the United States into the “crypto capital of the world.”.

But the preferences of individual politicians and individuals at the head of the SEC still cannot prevail over existing securities laws. For example, the Howey test, which the US Supreme Court has been mandatorily using for over 75 years to define and regulate securities.

Atkins' goal as head of the SEC is to maintain a balance between industry innovation and investor protection.. It will therefore be required to comply with securities laws based on economic substance rather than form, which is always a particularly sensitive issue for tokens like TRUMP.

Analysts are also concerned that the value of such a token may directly depend on the political decisions of the president, which causes a conflict between his public duty and the desire for profit. The active and pervasive involvement of Trump family members in business and politics adds an additional layer of complexity and further blurs the lines between public service and enrichment..

" While selling Trump-branded merchandise may raise ethical concerns, control of a financial instrument whose value may be directly tied to the president's policies creates a much more serious conflict between public duty and private benefit,"

In the cryptocurrency community, the attitude towards TRUMP is also ambiguous: some see it as an important step towards the mass adoption of cryptocurrencies, while others see it as a dangerous precedent.. Deeper concerns about the intersection of political power and crypto markets include:.