The potential for the first Memecoin-based exchange-traded fund (ETF) is growing under new leadership at the US Securities Regulator, industry watchers told Cointelegraph.
Cathie Wood of Arc Investments says that despite a massive rally following the launch of President Donald Trump’s official Trump memecoin, Memecoin, and the increased likelihood of a pairing ETF, she believes the three biggest crypto It said it would not invest in tokens while maintaining its focus on currencies.
Trump, Doge, Bonk ETF approved ‘more likely’ under new SEC leadership
The first wave of Memecoin-based ETFs is gaining traction thanks to new leadership at the U.S. Securities and Exchange Commission.
The crypto industry saw an uptick in Memecoin ETF filings following the launch of the Trump family’s Memecoins, which attracted significant retail interest.
The SEC received the first filings for the Trump, Dogecoin (Doge) and Bonk (Bonk) ETFS on January 21st.
Approval of a Memecoin-based ETF is more likely under new SEC acting Chairman Mark Uyeda, according to Dmitrij Radin, founder and chief technology officer of Zekret, Fideum Crypto Regulatory and Infrastructure Firm.
“Approval of the Trump, Vonk and Dozi ETFS is more likely now with Trump’s new crypto-friendly SEC pick,” Cointelegraph said. “This is a bold move, potentially bringing more liquidity and mainstream acceptance to Memecoins.”
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Cathie Wood won’t invest in Trump coins.
Wood, CEO and Chief Investment Officer of Ark Invest, said Trump is ushering in the next phase of the crypto revolution.
In a Jan. 22 interview with Bloomberg, Wood discussed Trump’s Token, which he launched shortly before his inauguration as the 47th president of the United States.
“(Trump) will not have a utility (…) (…) There is speculation that we will see President Trump as one of the utilities owning these coins. I don’t know if that’s true, but so far I don’t see much utility for this coin except that it is a memento of President Trump himself.”
She compared the current Memecoin Wave to the 2017 initial coin offering movement.
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Trump Family Could Build a “Huge Business” on Ethereum – Rubin
The Trump family could expand their involvement in the cryptocurrency industry by starting an Ethereum-based business.
The speculation followed the release of Trump-branded memo coins and Donald Trump’s inauguration as the 47th President of the United States on January 20.
Ethereum co-founder and Consensys founder Joseph Lubin hinted at this development in a January 21 post on X.
“From what I know, the Trump family is going to build one or more huge businesses on Ethereum,” Lubin said. “The Trump administration will do good things for the United States, and that includes ETH.”
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US court overturns Tornado Cash sanctions in pivotal case against crypto
A U.S. court has overturned sanctions against the Tornado Cash Cryptocurrency Mixing protocol in a decision that could significantly shift toward more innovation-friendly regulations for privacy technologies.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) originally sanctioned Tornado Cash in August 2022, accusing it of facilitating money laundering by North Korea’s Lazarus Group. The group is said to have laundered more than $455 million in stolen digital assets through the protocol.
The sanctions led to the arrest of Tornado Cash developer Alexey Pertsev, who was found guilty of money laundering by Dutch judges at the S-Hertogenbosch Court of Appeal on May 14, 2024. Pertsev was sentenced to 5 years and 4 months in prison. There are $1.2 billion in illicit assets through the platform.
The U.S. District Court for the Western District of Texas vacated OFAC sanctions, according to a Jan. 21 court filing. The court ruled:
“It is hereby ordered and adjudicated that the judgment of the district court be set aside and remanded to the district court for further proceedings in accordance with the opinion of this court.”
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Phemex suspends withdrawals after $29 million in “suspicious” outflow
The Phemex crypto exchange halted its withdrawal after warning of a suspicious leak worth nearly $30 million, raising alarm among blockchain security firms.
According to Onchain Security Firm Cybers, Phemex has seen over $29 million in crypto transfers across multiple blockchains, including BNB (BNB), Polygon (MATIC), ARBITRUM (ARB), and Native (BASE).
The leak pointed to “suspicious transactions” involving the Phemex Hot wallet mentioned in the X post on January 23rd.
“Over $29 million worth of digital assets were transferred to suspicious addresses. This address has already started converting assets to $eth.”
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Defi Market Overview
Most of the 100 largest cryptocurrencies by market cap ended the week in the green, according to data from Cointelegraph Markets Pro and TradingView.
Among the top 100, the Official Trump (Trump) token is the biggest gainer of the week, up over 429%, while the Radium (Ray) token is up over 38% on the weekly chart.
Total value locked in Defi. Source: Defillama
Thank you for reading our roundup of the most influential Defi developments this week. Join us next Friday for more stories, insights, and education about this dynamically evolving space.