The world of cryptocurrency is evolving at breakneck speed, with meme-inspired digital assets like TRUMP, Dogecoin (DOGE), and Bonk (BONK) now inching toward mainstream financial legitimacy through potential exchange-traded fund (ETF) approvals. While regulatory shifts under new leadership at the U.S. Securities and Exchange Commission (SEC) are increasing the likelihood of such products hitting the market, not all major investors are on board.
Notably, Cathie Wood, CEO and CIO of ARK Invest, has publicly stated she will not invest in the TRUMP memecoin due to its lack of utility — reaffirming her focus on established digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Meme Coin ETFs Gain Momentum Under New SEC Leadership
Recent developments suggest that the first wave of meme coin-based ETFs may soon become a reality, driven in part by leadership changes at the SEC. With Mark Uyeda serving as acting chair, industry experts see a more favorable environment for innovative crypto financial products.
Dmitrij Radin, founder of Zekret and CTO at Fideum — a firm specializing in crypto regulatory infrastructure — believes the shift could open doors for unconventional assets.
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"With Trump’s new crypto-friendly SEC appointees in place, the chances of TRUMP, BONK, and DOGE ETFs being approved have increased significantly," Radin told Cointelegraph. "It’s a bold move that could bring greater liquidity and mainstream recognition to meme coins."
This growing regulatory openness follows a surge in ETF applications tied to politically and culturally themed cryptocurrencies. In late January, filings were submitted for ETFs based on TRUMP, DOGE, and BONK — signaling growing institutional interest in once-fringe digital assets.
While these tokens began as jokes or community-driven experiments, their rising popularity among retail investors has prompted serious consideration from asset managers and regulators alike.
Cathie Wood Stands Firm: No Investment in TRUMP Coin
Despite the momentum behind meme coins, Cathie Wood remains skeptical. In a January 22 interview with Bloomberg, she expressed clear reservations about the TRUMP token’s value proposition.
"[TRUMP] won’t have any utility [...] There’s speculation that one of the utilities of holding this coin might be meeting President Trump. I don’t know if that’s true, but so far, we don’t know what the utility of this coin is other than it being a commemorative token of President Trump himself."
Wood likened today’s meme coin frenzy to the 2017 initial coin offering (ICO) boom, a period marked by rampant speculation and limited real-world application. Many ICOs from that era ultimately failed to deliver on promises, leading to investor losses and increased regulatory scrutiny.
For Wood, investment decisions remain rooted in innovation, scalability, and long-term utility — principles embodied by Bitcoin, Ethereum, and Solana.
She continues to advocate for disruptive technologies like blockchain and decentralized finance (DeFi), but draws a firm line at assets lacking functional use cases.
Could the Trump Family Build a Major Ethereum-Based Business?
Speculation is mounting that the Trump family could deepen its involvement in the crypto space — not just through tokens, but by launching enterprise-grade applications on Ethereum.
Joseph Lubin, co-founder of Ethereum and founder of Consensys, hinted at this possibility in a January 21 post on X (formerly Twitter):
"From what I understand, the Trump family will be building one or more giant businesses on Ethereum. The Trump administration will do what’s good for America — and that involves Ethereum."
This statement came shortly after Donald Trump’s inauguration as the 47th U.S. president and a series of Trump-branded memecoin launches. While no official projects have been announced, Lubin’s comments have fueled expectations of a broader strategic move into decentralized technologies.
An Ethereum-based platform could offer everything from digital collectibles and fan engagement tools to tokenized memberships or even political fundraising mechanisms — all leveraging smart contracts and decentralized infrastructure.
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Such developments would represent a significant leap beyond symbolic tokens, aligning more closely with Cathie Wood’s vision of meaningful technological impact.
U.S. Court Overturns Sanctions on Tornado Cash
In a landmark decision for privacy and innovation in crypto, a U.S. federal court reversed sanctions imposed on Tornado Cash, a cryptocurrency mixing protocol designed to enhance transaction privacy.
The Treasury Department’s Office of Foreign Assets Control (OFAC) originally sanctioned Tornado Cash in August 2022, alleging it facilitated money laundering for North Korea’s Lazarus Group — which reportedly laundered over $455 million in stolen digital assets through the platform.
However, on January 21, the U.S. District Court for the Western District of Texas vacated those sanctions, marking a pivotal moment for developer rights and privacy-preserving technologies.
"The judgment of the district court is reversed, and the case is remanded for further proceedings consistent with this opinion."
This ruling challenges the legality of sanctioning open-source code rather than individuals or entities. Critics had long argued that penalizing software protocols sets a dangerous precedent for internet freedom and technological innovation.
The case also involved the arrest of Alexey Pertsev, a developer linked to Tornado Cash, who was convicted in May 2024 by a Dutch court and sentenced to five years and four months in prison for laundering $1.2 billion in illicit funds.
The reversal reignites debate over where to draw the line between regulation and innovation in decentralized ecosystems.
Phemex Halts Withdrawals After $29M Suspicious Outflow
On January 23, crypto exchange Phemex temporarily suspended withdrawals following reports of suspicious outflows totaling nearly $29 million across multiple blockchains.
According to blockchain security firm Cyvers, large transfers were detected involving BNB (Binance Coin), MATIC (Polygon), ARB (Arbitrum), and BASE assets — all originating from Phemex hot wallets.
"Over $29 million worth of digital assets have been moved to suspicious addresses. These addresses have already started swapping assets into ETH and stablecoins."
While Phemex has not issued an official statement confirming a breach, the incident has raised concerns about exchange security and asset custody practices. Users are advised to monitor their holdings closely and consider using self-custody wallets for long-term storage.
Such events underscore the importance of transparency and robust security protocols in maintaining trust within the crypto ecosystem.
DeFi Market Recap: Meme Coins Surge Amid Broader Green Trends
According to data from Cointelegraph Markets Pro and TradingView, most of the top 100 cryptocurrencies ended the week in positive territory.
Among them:
- The official TRUMP token surged over 429%, becoming the week’s top performer.
- Raydium (RAY) followed with gains exceeding 38%.
These spikes reflect heightened retail interest driven by political sentiment, celebrity influence, and speculative trading behavior.
Meanwhile, total value locked (TVL) in decentralized finance protocols continues to stabilize, indicating sustained confidence in core DeFi infrastructure despite market volatility.
Frequently Asked Questions (FAQ)
Q: Why won’t Cathie Wood invest in the TRUMP memecoin?
A: She cites a lack of utility — meaning the token doesn’t serve a functional purpose beyond being a commemorative item. Without real-world applications or technological innovation, it doesn’t meet her investment criteria.
Q: Are meme coin ETFs likely to be approved soon?
A: Yes, under the current SEC leadership, especially with Acting Chair Mark Uyeda’s reportedly more open stance toward crypto innovation, approval chances for DOGE, BONK, and TRUMP ETFs have increased.
Q: What does the Tornado Cash ruling mean for crypto privacy?
A: It’s a major win for privacy advocates and developers. The court’s decision questions whether open-source protocols can be legally sanctioned without targeting specific bad actors.
Q: Is it safe to keep funds on exchanges like Phemex?
A: While reputable exchanges implement security measures, no platform is immune to risk. For maximum safety, consider transferring large holdings to self-managed wallets.
Q: Can meme coins have long-term value?
A: Some may evolve into meaningful platforms (e.g., Dogecoin’s community-driven initiatives), but most rely heavily on hype. Long-term viability depends on adoption, utility, and ecosystem development.
Q: How might the Trump administration impact crypto regulation?
A: Early signals suggest a more supportive environment, especially with crypto-friendly appointments at key agencies like the SEC — potentially accelerating innovation-friendly policies.
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As the line between culture, politics, and finance blurs in Web3, investors must navigate both opportunity and risk with clarity and caution. Whether meme coins evolve into lasting assets or fade as fleeting trends, one thing is certain: the future of money is being redefined — one blockchain at a time.