The Trump administration is making headlines with its very ambitious initiatives to bridge traditional finance and cryptocurrency. Trump announced the $500 billion "Stargate" AI infrastructure project that will create over 100,000 jobs and improve national security. However, not all of Trump’s ventures are thriving. His meme coin, TRUMP, crashed after one of his latest press conferences, and the newly formed Department of Government Efficiency (DOGE) faces a number of legal challenges for alleged noncompliance with transparency and ethics laws.
Trump Administration Poised to Bridge Crypto and TradFi
Franklin Templeton CEO Jenny Johnson is also very optimistic about the Trump administration's potential to integrate traditional finance and cryptocurrency by establishing clearer regulations. In a Jan. 21 interview with Bloomberg, Johnson talked about just how important it is to bridge the gap between traditional finance and crypto, and mentioned that there is a big need for regulatory clarity to drive innovation and reduce costs.
She believes that blockchain technology could play a pivotal role in the future, and especially in the creation of exchange-traded funds (ETFs) and mutual funds. She described blockchain as an efficient programming language well-suited for such applications.
Jenny Johnson during her interview with Bloomberg
Despite the fact that President Donald Trump signed a number of executive orders on his first day in office, none addressed cryptocurrency policy at all. This left his campaign promises of crypto-friendly measures unfulfilled for now. However, with hundreds of pro-crypto candidates securing seats in Congress, industry leaders are still hopeful that the US government could become one of the most supportive of cryptocurrency in history.
Johnson acknowledged the immense potential of the crypto industry but also warned of inevitable shakeouts like the dot-com bubble. She pointed out that while some crypto ventures will fail, others could still emerge as industry leaders, similar to how the dot-com era gave rise to major tech companies despite the collapse of many others. The dot-com bubble peaked at $2.95 trillion in 2000 before sharply declining.
Trump Announces Stargate Project
US President Donald Trump announced a new $500 billion private-led artificial intelligence (AI) infrastructure initiative called “Stargate.” The project will build AI data centers across the United States, and receive initial investments from key stakeholders including OpenAI, SoftBank, and Oracle. According to Trump, the Stargate project will create over 100,000 jobs for Americans. SoftBank CEO Masayoshi Son also revealed that $100 billion will be deployed immediately, while the remaining $400 billion will be distributed over the next four years.
MGX, an AI investment firm, along with Microsoft, Nvidia, and Arm, were named as other major technology partners that will be involved in the project. OpenAI's Sam Altman and Oracle's Larry Ellison also appeared at the announcement, where Trump shared his determination to keep AI innovation in the US to stay ahead of competition from China and other countries. He pledged to make the initiative possible through emergency declarations.
The Stargate data centers are already being constructed at Oracle’s Abilene, Texas, facility, and other locations are under evaluation. Ellison explained that Stargate would support a wide range of applications, including the advancement of healthcare through improved maintenance and analysis of electronic health records.
According to OpenAI, the Stargate initiative will not only help re-industrialize the US but will also improve national security. The project is considered to be a crucial step toward the development of artificial general intelligence (AGI), with the ultimate goal of enabling advancements that could elevate humanity. Son added that the eventual emergence of Artificial Superintelligence (ASI) through Stargate could solve a number of very complex global challenges that humanity has not yet considered.
Trump’s Meme Coin Crashes
Although there is a lot of hope and excitement surrounding Trump’s incoming administration and new ventures, not all of them are experiencing smooth sailing. Donald Trump’s newly launched meme coin, Official Trump (TRUMP), experienced a sharp decline after the president’s admission that he actually knows very little about it.
At a Jan. 21 press conference where he announced the $500 billion AI investment, Trump was asked about the token and responded, “I don’t know much about it other than I launched it, other than it was very successful.” When informed that the token made billions, Trump remarked, “That’s peanuts for these guys,” gesturing to industry leaders that were present.
The token was launched on Jan. 18, and surged to an all-time high of $73.43 on Jan. 19. However, TRUMP since fell to around $41, a drop of more than 40% from its peak. People in the crypto industry criticized Trump’s lack of involvement with the meme coin. Bloomberg’s James Seyffart stated, “Trump just nuked his own meme coin.” The Kobeissi Letter also pointed out Trump’s apparent detachment from the project, and referred to the absence of public comments about it since its launch.
TRUMP’s price action over the past 24 hours (Source: CoinMarketCap)
Adding to the token’s struggles, First Lady Melania Trump launched her own meme coin, Melania Meme (MELANIA), which reached a high of $13 on Jan. 20 before plummeting. For now, the crypto community is still very skeptical about the president’s meme coin, and many predict a major sell-off is on the horizon.
According to Arkham Intelligence, Trump holds a crypto wallet with many large investments in meme coins, including $3.1 million worth of a token called TROG.
Trump’s DOGE Department Faces Legal Backlash
The newly established US Department of Government Efficiency (DOGE), which was also created by President Donald Trump through an executive order, is facing a series of legal challenges after his inauguration. DOGE is a temporary organization that was established to modernize government systems and address inefficiencies. It has come under scrutiny for alleged violations of the Federal Advisory Committee Act (FACA), which mandates transparency, public involvement, and ethical compliance in federal committees.
The nonprofit law firm National Security Counselors filed a lawsuit against DOGE due to noncompliance with FACA. Additional legal actions were initiated by ethics watchdog Citizens for Responsibility and Ethics, consumer advocacy group Public Citizen, and the Center for Biological Diversity.
(Source: doge.gov)
These organizations argue that DOGE operates without congressional authorization or funding and is led by unelected billionaires that do not represent ordinary Americans. The lawsuits also question the legality of DOGE’s designation as a government department, which is a status that typically requires congressional approval.
Citizens for Responsibility and Ethics was joined by other organizations, including the American Public Health Association, the American Federation of Teachers, and Minority Veterans of America. They are asking for a court ruling to ensure DOGE complies with transparency, ethics, records retention, and equal representation standards under FACA. Meanwhile, the Center for Biological Diversity demanded access to all records related to DOGE from the Office of Management and Budget.
DOGE is spearheaded by Elon Musk, who proposed the idea, and was briefly co-led by former presidential candidate Vivek Ramaswamy. He resigned on Inauguration Day to pursue his Ohio governor bid. DOGE plans to reduce federal government costs by up to $2 trillion by 2026.
