While there are still talks of US President Donald Trump launching a memecoin named after himself, TD Cowen said that Trump’s memecoin could negatively impact cryptocurrency regulation.
US investment bank TD Cowen has published a report stating that the TRUMP memecoin could pose a threat to bipartisan cryptocurrency legislation.
According to The Block, TD Cowen analysts said that the TRUMP memecoin will be investigated by Democrats, who will demand information on whether foreign governments and companies purchased the token to curry favor with Trump.
Analysts have said Trump and his administration would not accept or cooperate with such an investigation launched by Democrats, which could stoke partisan tensions.
TD Cowen analysts led by Jaret Seiberg wrote:
“Democrats will demand details on whether foreign governments and commercial companies used token purchases to favor Team Trump,
This puts at risk the ability to advance the crypto bill with the bipartisan support needed.
This is why we are concerned about Trump’s decision to launch a memecoin.”
TD Cowen analysts recently predicted that the cryptocurrency bill would be delayed until 2026 as both parties focus on midterm election campaigns.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/us-major-bank-said-donald-trumps-memecoin-trump-is-a-threat-to-cryptocurrencies-and-explained-why/