Trump Memecoin Marks a New Era for Crypto Regulation: Bernstein

The launch of President-elect Donald Trump’s TRUMP memecoin signals the dawn of a new regulatory era for cryptocurrencies, according to a report by broker Bernstein. Analysts believe this move represents a positive shift for U.S.-based crypto builders following regulatory crackdowns during the Biden administration.

A Paradigm Shift in Crypto Regulation

“This token launch signifies a new regulatory era where governments begin leveraging crypto as a technology to connect with the masses,” Bernstein analysts, led by Gautam Chhugani, wrote in their Monday report.

TRUMP, which debuted on Saturday on the Solana blockchain, quickly soared to a fully diluted market capitalization of $73 billion, marking one of the most successful token launches to date. However, the token experienced a sharp 40% decline on Sunday after First Lady Melania Trump introduced her own memecoin, MELANIA.

Building Optimism Among U.S. Crypto Developers

Bernstein highlighted the symbolic importance of the launch, encouraging crypto developers to innovate within the U.S. without fear of regulatory backlash. “This sends a strong message to crypto builders: ‘Build away in the U.S., and don’t hesitate to launch tokens—a new crypto regulatory era is here,’” the report stated.

Insider Supply Raises Questions

Despite the enthusiasm, Bernstein noted concerns over the utilization of the TRUMP token’s supply. Approximately 80% of the tokens are held by CIC Digital, an entity owned entirely by the Donald Trump Revocable Trust.

“A memecoin tied to Trump’s brand and politics has significant potential for longevity,” the report said, “but its success depends on token design and reducing the extractive impact of the insider supply.”

Future Prospects for TRUMP Token

The TRUMP token is set to be listed on major cryptocurrency exchanges, including Coinbase and Binance, according to official announcements. With its massive launch and strong brand appeal, the token’s trajectory could set a precedent for future political and brand-backed crypto initiatives.