The cryptocurrency Official Trump (TRUMP) surged 16% after former President Donald Trump called for the passage of the Digital Asset Market Structure Act, also known as the Clarity Act.
As of 1:50 p.m. (Korean time) on Thursday, Official Trump was trading at 2,285 KRW (about 1.65 USD) on Bithumb, up 16.76% from the previous day.
Official Trump is a meme coin launched in January last year, coinciding with Trump’s inauguration. Unlike traditional cryptocurrencies, meme coins are driven more by trends and community interest than specific use cases, making them more volatile.
The coin’s price skyrocketed upon launch, drawing significant market attention. However, it also raised concerns about potential conflicts of interest, as a sitting president could potentially use political influence for personal gain.
The recent price surge is likely due to Trump’s public support for the Clarity Act, a key issue in the crypto industry. Investors are flocking to Trump-associated cryptocurrencies as expectations for crypto-friendly policies grow.
On Wednesday, during a White House event attended by representatives from major crypto companies like Coinbase, Gemini, Ripple, and Chainlink Labs, Trump stated that Congress needs to move forward with the Clarity Act.
Trump described the Clarity Act as a very strong and systematic bill that would keep the U.S. ahead of China and other countries in the crypto space.
He also sought input from attendees on potential government crypto policies.
The Clarity Act aims to delineate the supervisory roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in the crypto market. It also addresses key issues such as stablecoin interest payments, DeFi regulations, and restrictions on public officials’ involvement in crypto businesses.
If passed, the bill is expected to significantly reduce regulatory uncertainty in the crypto industry. This is why the sector views the Clarity Act as a crucial legislative priority, following last year’s passage of the Genius Act.
However, ongoing disagreements over stablecoin interest payments and ethics provisions for public officials have delayed the bill’s progress.