- John Deaton criticizes Trump’s memecoin launch, calling it a potential “casino gambling kind of technology”
- Deaton suggests profits from the memecoin should go to charitable causes like aiding disaster victims
- Concerns arise over potential conflicts of interest and ethical implications of a sitting president profiting from a memecoin
Pro-XRP Lawyer and former U.S. Senate Candidate John Deaton recently shared his point of view regarding the bombastic launch of the Donald Trump memecoin.
In an appearance at the 3T Warrior Academy Youtube channel on the show titled “Good Morning Crypto Show” on January 20th — Deaton gave his thoughts on what he thinks about the Presidential memecoins.
Deaton was not happy with the launch of the memecoins, arguing that it could lead to a perception of the crypto space as a “casino gambling kind of technology.”
He cited XRP’s journey of being a neglected currency during the last couple of years due to regulatory concerns and compared it to the potential ethical risks associated with the Trump memecoin.
Deaton highlighted how XRP has faced significant challenges and legal scrutiny, emphasizing the importance of establishing clear and fair regulations to prevent similar issues with new crypto projects.
“We’ve witnessed an absolute war against crypto, not just unjust but in many instances unlawful,” John Deaton said. “But that doesn’t mean we want a complete free-for-all where there’s no rules of the road, no regulations whatsoever.”
Many in the cryptocurrency community share Deaton’s point of view. In their mind, the infamous Presidential memecoins could be worrisome for the future of crypto.
For starters, having a sitting U.S. President profiting off of a memecoin is not really a great look. Adding to that, the risks associated with Trump’s potential conflict of interest make it hard to see this idea pay off without complications.
Both $TRUMP and $MELANIA were launched by Trump-affiliated companies. This means that if a foreign government decides to invest in these tokens, these companies would profit from the trading revenue.
This would not only be unethical but also illegal according to The Foreign Emoluments Clause — a law that affirms that U.S. government officials are prohibited from receiving monetary incentives from other nations without Congress’s approval.
Of course, the decentralization inherent in crypto assets makes proving this favoritism almost impossible, opening a legal leeway for the Presidential memecoins.
That is not to say that Trump’s intentions for launching a memecoin were to receive financial incentives. The argument here is only that it is hard to see this idea paying off given the serious repercussions it may have on the perception of the crypto industry.
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