U.S. regulators’ new crypto rules could be a big win for Trump-linked tokens, industry insiders say
Federal regulators on Tuesday published a long-awaited framework for classifying crypto assets that industry insiders say could substantially loosen oversight—and potentially benefit crypto ventures tied to the Trump family.
What regulators announced
- The Securities and Exchange Commission (SEC), led by Chair Paul Atkins, rolled out a “token taxonomy” that aims to clarify which digital assets are securities and which are not. The guidance was published jointly with the Commodity Futures Trading Commission (CFTC).
- Under the framework, most crypto assets would be categorized as commodities, collectibles, payment tokens or “digital tools.” Only blockchain representations of existing securities (for example, tokenized stocks or bonds) would continue to be treated as securities subject to the SEC’s full disclosure and enforcement regime.
- Atkins said the agency is no longer the “securities and everything commission,” calling the taxonomy a “bridge” while Congress works on comprehensive legislation.
Why this matters to the Trump family
- Several tokens linked to the Trump family fall into categories the new guidance would remove from SEC oversight. That includes so-called “meme coins” such as $Trump (launched prior to the second inauguration in January 2025) and $Melania, as well as tokens issued by World Liberty Financial—USD1 (a dollar-pegged stablecoin) and $WLFI (a governance token).
- Industry lawyers and lobbyists say treating meme coins and similar tokens as collectibles or payment tokens reduces disclosure obligations and enforcement uncertainty, which could make them more attractive to institutional investors. Gracy Chen, CEO of exchange Bitget, noted that tokens previously viewed as high-risk may draw more institutional interest under clearer, narrower classifications.
- Reporting by the Wall Street Journal has tied large sums to the family’s crypto activity—claiming the family’s net worth increased materially after $WLFI’s launch in September 2025 and reporting that associates of an Abu Dhabi royal purchased a 49% stake in World Liberty Financial as part of a roughly $500 million deal—reporting that raised questions about possible pay-to-play dynamics. World Liberty Financial says it has prioritized compliance and that it did not work with the SEC or CFTC on the new rules prior to their release.
Industry reaction and political context
- The changes reflect a broader regulatory stance during the current administration that favors narrower SEC oversight compared with aggressive enforcement approaches seen previously. Atkins announced the taxonomy at the Blockchain Summit in Washington, D.C., hosted by crypto lobbying group The Digital Chamber; his remarks were warmly received by attendees.
- Supporters framed the move as pro-innovation: Cody Carbone of The Digital Chamber called the announcements a sign regulators understand digital-asset technology and want to balance innovation with consumer protection. Summer Mersinger, CEO of the Blockchain Association, said agency coordination helps in the short term while Congress works on a lasting statutory framework.
- The legislative backdrop is uncertain: draft bills such as the so-called Clarity Act remain stalled in Congress, in part because of debates about stablecoin interest-bearing products and the role of banks.
Concerns and unanswered questions
- Legal experts warn the taxonomy creates regulatory gaps. Stephen Aschettino, a crypto-focused partner at Fox Rothschild, said classifying meme coins as “digital collectibles” would put them outside SEC and CFTC purview—meaning less mandatory disclosure and fewer anti-fraud protections under securities law. Todd Baker, a senior fellow at Columbia Business School and Columbia Law School, criticized the approach as enabling expansion of profit-driven crypto issuance with limited federal oversight.
- Though regulators pitched the taxonomy as an interim measure, some industry lawyers caution that market changes driven by looser rules can be hard to reverse and could reshape capital flows and investor behavior long after any future administration.
Bottom line
The SEC/CFTC taxonomy narrows which tokens are treated as securities and is likely to reduce some compliance burdens across the industry. For projects tied to the Trump family, that regulatory narrowing could translate into fewer disclosure requirements and broader access to investors—advantages observers say will accelerate debate over whether the framework strikes the right balance between innovation and investor protection.
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