TechFlow news, on January 20, Forbes published a column commenting on Trump's launch of a Meme coin. Forbes pointed out that Trump's issuance of the Meme coin could trigger a constitutional crisis. Although the new SEC chair may introduce crypto-friendly policies, the Howey Test—the cornerstone of securities regulation for 75 years—remains unaffected by politics.
Forbes analysis indicates that the TRUMP token may violate three key elements of the Howey Test under securities law: investment of money, in a common enterprise, with an expectation of profit derived from the efforts of others. While Trump has positioned the token as "supporting free expression" rather than an investment product in promotions on Truth Social and X, the timing of the launch and the token's structure have raised regulatory concerns.
