Trump’s Meme Coin Faces Legal and Tax Scrutiny
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The United States President, Donald Trump, launched his meme coin, TRUMP, a few days before his inauguration, sparking excitement in the crypto industry. However, the coin is now under legal and tax scrutiny. Fintax has raised three serious concerns, with the primary issue being whether TRUMP qualifies as a security under US regulations. The US Security and Exchange Commission (SEC) states that digital assets supplied through initial coin offerings (ICOs) are considered securities if they meet the Howey Test Criteria. While the TRUMP team claims the coin is not a security and has not promised any future profits, the public launch and the nature of ICOs raise questions about its classification.
