How Donald Trump's crypto investments will impact the market

The Street

Frank Speiser, CEO of Metafide, joins TheStreet to explain how the President's crypto holdings might impact the market.

Transcript

00:00So, part of this new era under Trump, right, he's launched a meme coin, his company is

00:08expanding into crypto.

00:10How are those things likely to impact the mainstreaming or the further mainstreaming

00:17of crypto?

00:18Well, it is interesting just when you think that we now have a DeFi founder as a president,

00:24if you look at it that way.

00:26And so I think that's somewhat of a signal to the market that they're going to allow,

00:33you know, decentralized finance and building on Ethereum and things like that to continue

00:38to work in the market.

00:40However, the quality of that project remains to be seen.

00:43And the way that the token distribution is set remains to be seen if that's going to

00:48work for the market.

00:49I wouldn't necessarily use that as the barometer for what is potentially, you know, coming

00:55to market.

00:56I think there's plenty of great projects that, you know, will or will not pan out.

01:01But it's one of those things where it is a signal that the president himself views the

01:05market as somewhat of someone to partner with.

01:08Now what's the risk here of there being too much closeness between the White House and

01:16the crypto industry, almost seemingly bypassing regulators?

01:22I don't know that they're planning on bypassing regulators, to be honest with you.

01:25I don't have any inside signal to that.

01:27And I also think that it's no different than the president uses banking systems.

01:33The president, you know, has investments that go through investment banks and he gets loans

01:38from investment banks.

01:39I think it's the same thing where you're using a piece of the financial apparatus to accomplish

01:44a goal.

01:45I don't necessarily think there's a such thing as too close, but I think that everybody should

01:50be held account, be made to be honest and go about their business the right way.

01:54And so I don't think there's any room to do something in this system that you would

02:00try to avoid in the old system or the legacy system.

02:04Right.

02:05But there is an implied, I don't want to say bias, but there is an implied backing, right?

02:12That's just different from coming out and speaking at the podium, right?

02:18What's the risk that, you know, like people pile into this industry because they feel

02:24like, well, the president is in it and he has a meme coin.

02:28So it's it's it gives like a perceived air of of safety.

02:35Sure.

02:36Yeah.

02:37So there needs to be people held to the rules and regulations, first of all.

02:42But also, I think when you look at, you know, the president entering the space, I think

02:51it's one of those things where it's a signal to the market that it's been somewhat hostile

02:55to operate in the space over the previous several years.

02:58And he's he's saying it's OK.

03:00I don't think what he's saying is I'm going to flout the rules of business and the regulations.

03:06And I do think, you know, the previous every president prior to this one has participated

03:11in the financial markets in some some degree or another.

03:15It is a little different than, say, a previous president, like if there was George W. Bush

03:20in the bond market or something like that, like I think that would warrant a closer look.

03:25So I'm I'm not suggesting in any way to look the other way or to take it easy.

03:29But I think that we should give this president a chance to see if he's going to do the right

03:33thing for the space.

Category

Transcript

Recommended