US Crypto Rules Shift Sparks Debate Over Trump Family’s Financial Gains

Major US financial regulators recently published new guidelines for the cryptocurrency industry, potentially easing regulatory burdens and prompting speculation about benefits for ventures linked to the Trump family. The Securities and Exchange Commission (SEC), under the leadership of Chair Paul Atkins, unveiled a “token taxonomy” designed to clarify which crypto assets qualify as securities – a designation that triggers stricter oversight.

New Framework Classifies Most Crypto as Commodities

The guidelines, issued jointly with the Commodity Futures Trading Commission (CFTC), categorize the majority of crypto assets as commodities, collectibles, payment tokens, or “digital tools,” exempting them from the SEC’s more rigorous requirements. Only blockchain-based representations of traditional securities, like stocks and bonds, will continue to be classified as securities under this new framework.

Potential Benefits for Trump Family Ventures

Legal experts, lobbyists, and crypto entrepreneurs suggest these changes could significantly reduce regulatory hurdles for the crypto sector and attract greater institutional investment. This shift may particularly benefit the Trump family’s various crypto projects. Todd Baker, a senior fellow at Columbia Business School and Columbia Law School, noted the interpretation aligns with the Trump administration’s broader approach to facilitating crypto activity with minimal federal regulation.

Reversal of Prior SEC Approach

The new guidelines represent a departure from the SEC’s previous stance under the Biden administration, as well as during the initial period of the first Trump administration, which involved regulating the sector through enforcement actions and broadly classifying crypto assets as securities. Atkins stated the SEC is “not the ‘securities and everything commission’ any more” during the announcement at the Blockchain Summit, hosted by The Digital Chamber, a crypto lobbying group.

Industry Reaction and Legislative Uncertainty

Cody Carbone, CEO of The Digital Chamber, expressed optimism that the announcements demonstrate the agencies’ understanding of digital asset technology and a commitment to balancing innovation with consumer protection, potentially solidifying the US’s position as a “crypto capital.” The guidelines are intended as a “bridge” while Congress considers more comprehensive legislation, such as the Clarity Act, which faces delays due to disagreements between crypto companies and banks regarding stablecoin interest provisions.

Trump Family’s Crypto Holdings Poised to Benefit

The Trump family’s crypto initiatives, including projects involving “meme coins” like $Trump and $Melania, are positioned to benefit from the new classifications. Gracy Chen, CEO of Bitget, a crypto exchange, suggests the narrowed securities classifications could increase institutional investor interest in meme coins and similar tokens, which were previously considered high-risk due to regulatory uncertainty.

World Liberty Financial and Abu Dhabi Investment

The guidelines as well reaffirm that other Trump-affiliated crypto tokens, such as the USD1 stablecoin and $WLFI (a governance token), will not be considered securities. Both are issued by World Liberty Financial, co-founded by members of the Trump family in 2024. Reports indicate the Trump family has gained $5 billion in net worth since the launch of $WLFI in September 2025, with a 49% stake acquired by associates of an Abu Dhabi royal in a $500 million deal, raising concerns about potential corruption.

Concerns Over Lack of Disclosure and Investor Protection

Stephen Aschettino, a partner at Fox Rothschild specializing in crypto and financial technology, explained that the new guidelines classify meme coins as “digital collectibles,” exempting them from SEC and CFTC oversight. This lack of oversight means “there’s no mandatory disclosure, [and] no anti-fraud protections under securities laws,” a gap Aschettino believes warrants public attention.

Long-Term Implications Remain Uncertain

While Atkins characterized the rules as a temporary measure, Aschettino noted that regulatory guidelines can be challenging to overturn, potentially leading to lasting changes in financial markets.