U.S. President Trump actively embraces crypto, sparking polarized reactions across the political spectrum. Renowned billionaire and Dallas Mavericks owner Mark Cuban publicly criticized Trump's MEME coin and DeFi projects yesterday (7th), stating that such actions not only undermine the legitimacy of crypto but also potentially bring regulatory and trust risks.
Mark Cuban: President's MEME Coin is a Bad Example
"MEME coins and chain game TVL set a bad example for those wanting to understand the purpose and value of crypto," Cuban directly stated in an interview with The Block. He expressed strong dissatisfaction with two crypto projects directly involving Trump and his family - the official MEME coin $TRUMP and the DeFi project World Liberty Financial - warning that such behavior is setting a wrong example for the industry.
As early as January when $TRUMP coin was launched, Cuban had already raged: "This is the culmination of all scams, targeting those who know nothing about crypto. The hope of crypto industry establishing its reputation is almost gone."
$TRUMP Whale Dinner Becomes Controversial Center
The most controversial aspect of $TRUMP coin is the privilege of dining with Trump offered to large token holders, triggering Democratic Party accusations of potential conflict of interest. According to Bloomberg, most top token holders are not even within the United States.
Extended Reading: Bloomberg: Over 76% of Dinner Participants for Trump Coin Might Be from Outside the US
According to Chainalysis data, the coin has attracted about 2 million wallets, but only 58 wallets have gained over $10 million, while as many as 760,000 wallets are in a loss-making state, showing high inequality and raising retail investor protection concerns.
Democratic Party's Two Bills Target Presidential Crypto Chaos
Regarding the Trump family's direct involvement in crypto, the Democratic Party has consecutively pushed two bills to limit their influence. First, Senator Chris Murphy proposed the Memecoin Act, explicitly prohibiting presidents and congressional members from issuing MEME coins, directly pointing to $TRUMP coin as the "biggest corruption scandal in White House history".
On the other hand, Senator Jeff Merkley proposed the End Crypto Corruption Act, emphasizing the prohibition of federal officials and their families from issuing digital assets to prevent interest transfer and national security risks. He stated:
Now, those wanting to cultivate a relationship with the president can personally profit by buying crypto he owns or controls.
This is an extremely corrupt operation that not only endangers national security but severely damages public trust in government. We must stop this immediately.
MGX Investment Case Also Sparks Controversy
Besides the MEME coin controversy, Trump's supported World Liberty Financial platform is also entangled in disputes due to the international usage of stablecoin USD1. Abu Dhabi investment institution MGX announced it will use USD1 to complete a $2 billion Binance investment case, marking the first time a stablecoin has influenced international financial layout and raising Washington security concerns.
Senator Blumenthal has already launched an investigation into the platform and Fight Fight Fight LLC (the $TRUMP issuing entity) to determine if there are conflicts of interest or illegal activities. Both companies have not responded to media inquiries.
Two Sides: Cuban Supports Trump's Regulatory Reform
Despite his dissatisfaction with Trump's personal crypto involvement, Cuban still acknowledges the government's progress in crypto regulatory policies:
"I'm very happy that the SEC is finally undergoing reforms. These changes have been long overdue."
This stance highlights the two-sided nature of Trump's policies - drawing closer to the industry in policy and institutional aspects, while often operating in gray areas in actual actions, raising external questions: Has crypto-friendly policy become Trump's personal enrichment tool?
