• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Launch of TRUMP: Legal and Tax Issues Explored

user avatar

by Giorgi Kostiuk

6 months ago


Donald Trump's meme coin, launched prior to his inauguration, has stirred interest in the crypto industry. However, it is now facing legal and tax scrutiny.

Legal Scrutiny of TRUMP

The TRUMP meme coin raises questions about its classification as a security. The US Securities and Exchange Commission (SEC) considers digital assets offered through ICOs as securities if they meet the Howey Test criteria. However, the TRUMP team stated on their website that the coin is not a security and does not promise future profits. The SEC has not yet commented on TRUMP.

Tax Implications of Distribution

According to US tax laws, profits from cryptocurrency investments are subject to capital gains tax. Trump's team holds 80% of the TRUMP supply, which will be unlocked over three years. There is a dilemma whether the unlocking event is taxable. Tax applies when assets are sold or traded. Once TRUMP is traded or exchanged, it will incur capital gains tax based on the market price.

Political Donation Risks

TRUMP is seen as a potential means for political donations, which could breach strict US laws on transparency and limits. While there is no evidence of coins being used for political donations, the concept itself raises concerns.

The launch of TRUMP raises complex questions about legal and tax obligations, requiring careful analysis, and may have significant political ramifications.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

REX Shares Proposes TRON-Based ETF to Expand Crypto Offerings

chest

REX Shares has filed for a 2X Long TRON Daily Target ETF, which may increase interest in TRON among investors.

user avatarGiorgi Kostiuk

Cryptos to Watch: Overview of Top Assets in July 2025

chest

Exploring the best cryptocurrencies to watch in July 2025, featuring Qubetics, Solana, and Immutable X, with a focus on their real-world benefits.

user avatarGiorgi Kostiuk

HSBC and Blockchain: Launching Experiments for Hong Kong's Digital Dollar

chest

HSBC conducts blockchain experiments for e-HKD+ under HKMA on Ethereum, Arbitrum, and Polygon platforms.

user avatarGiorgi Kostiuk

Bitcoin Sets New Record, Leading to Over $1 Billion in Short Position Liquidations

chest

Bitcoin and other cryptocurrencies reached new all-time highs, causing over $1 billion in liquidations.

user avatarGiorgi Kostiuk

Bitcoin Sets New All-Time High Reaching $116,950

chest

Bitcoin surged to a new high of $116,950, highlighting positive sentiment across the cryptocurrency market.

user avatarGiorgi Kostiuk

Double Returns from TRON: REX Shares Proposes New ETF

chest

Financial firm REX Shares has filed for a new ETF that aims to increase investor returns from TRON.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.