Presidential memecoins raise a question the existing rules were not written to answer: what happens when a sitting president’s family issues a tradable asset that anyone in the world can buy?
Four gaps, stated plainly
- Disclosure. Federal financial disclosure forms enumerate salaries, securities, real property and similar assets. A memecoin held through an LLC does not map neatly onto those categories.
- Foreign purchasers. Foreign nationals may not make political contributions. Nothing comparable stops a foreign national from buying a token on a public exchange.
- Identity. Blockchains record wallets. Determining who benefits from a holding usually requires information that is not public.
- Classification. If a token is not a security, most of the securities-law machinery for disclosure and market conduct does not apply to it.
What has and has not happened
Members of Congress have introduced bills and sent oversight letters addressing tokens issued by public officials and their families. As of this writing no such measure has become law, and no court has ruled on the emoluments questions raised in relation to these tokens.
We state that carefully on purpose. A bill introduced is not a bill passed, and a letter sent is not a finding made.
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What would change the picture
Three things would: legislation defining how officials disclose digital-asset holdings; a regulatory determination on how these tokens are classified; or a court ruling on whether proceeds from a token sold to foreign purchasers implicate the emoluments clauses. Until one of those happens, the position is unsettled rather than settled in anyone’s favour.
Related: Trump memecoin tracker · Trump Finances