Beyond the presidential memecoin, four things that will signal actual change

Memecoins are one thing, real adoption is another

On Friday night, the incoming president launched a Solana-based memecoin. Over the weekend the coin surged in value against the backdrop of split public reception.

Here's a summary from Politico.

President-elect Donald Trump late Friday launched a cryptocurrency token that exploded in value overnight, potentially increasing his net worth by tens of billions of dollars on paper just days before he is set to be sworn in as president.

Trump launched the so-called memecoin — a digital token with no intrinsic real-world value that is traded on a digital ledger technology called blockchain — with posts on his social media site and X after 9 p.m., prompting the asset to soar in value. Its market capitalization was above $5 billion as of 2:30 p.m. Saturday, according to data from CoinGecko, and it has seen more than $11 billion in trading volume.

Remember, memecoins are a trade on attention. They are a new way to monetize on the internet and often have some digital culture underpinning.

So far, opinion seems to be split about the overall impact or significance of the presidential coin launch. Some within the crypto industry see this as a big mainstream moment— and that this launch signifies that crypto has arrived and is finally relevant to the establishment.

Others see this as a big departure from the entire reason crypto was created in the first place (as an alternative to the establishment).

The idea that the memecoin launch could simultaneously be interesting and disastrous is the great thing about open-source technology and information systems.

People can use them for all kinds of things.

Some of those uses we might like and agree with. Some we disagree with. But the point is people can build things, launch them, and then let the market or the people decide what is valuable and what isn't without the need for lots of layers in-between.

More than memes, four things that matter

While more memecoin launches will likely punctuate the incoming administration, it's essential to pay attention to issues that are really "crypto-friendly," and that will matter in the long term.

Here are four things to keep in mind as regulators and legislators propose new laws and policies:

Protecting self-custody

While self-custody might not command the same headlines as a viral presidential token, it is a key component of Open Money. The ability to fully control financial assets without an intermediary, is what makes fully decentralized digital asset systems possible.

While we are likely to hear a lot of pro-crypto rhetoric in the upcoming weeks and months, what's essential is that talk and posturing actually result in protections for technologies that allow people to quickly and safely self-custody their assets.

Consumer protections

We don't need another FTX debacle. Instead, we need thoughtfully designed consumer protections that help mitigate fraud and improve transparency. Striking the right consumer protection balance is key — over-regulation could stifle innovation, while under-regulation risks leaving everyday users vulnerable to exploitation.

Creating consumer protections that make sense for decentralized systems will likely be the most challenging goal on this list to solve.

Energy mining and market dominance

The importance of bitcoin production, or hash rate production, will soon become a new thorny geopolitical issue.

Encouraging domestic hash rate growth is not just about securing networks but also about asserting economic influence on a global scale. Countries that embrace crypto mining with sustainable energy strategies can position themselves as leaders in the digital economy. They will also have a say about how and where the energy supplied to the hash rate comes from, which can mitigate or exacerbate environmental concerns (at least within their own borders).

Regulatory clarity and incentives in this sector could provide a competitive edge and reinforce national security interests tied to blockchain infrastructure.

BTC reserves and international positioning

Bitcoin's role as a strategic reserve asset is increasingly entering the policy discourse. Nations exploring BTC reserves are not merely investing in a digital asset but recalibrating their economic hedging strategies against inflation and currency volatility.

The decisions made within the context of a strategic national reserve will have profound follow-on effects, influencing trade policies, monetary frameworks, and international negotiations. No pressure or anything.

While these issues might not be as glitzy or sticky as memecoin launches or hosting massive crypto industry events, self-custody, consumer protection, mining policy, and how best to create bitcoin reserves — will shape the trajectory of crypto's integration into mainstream financial systems.

Progress on the Open Money book project

This week was another productive week for building a book for a public project.

We are still in the opening section of the outline, but we will wrap that part up this coming week.

This first section's goal was to cover all of the different elements of why the Open Money framework is important and why we need a framework like this in the first place.

Upcoming sections will cover how the framework is a natural extension of the evolution of the internet and money systems, a closer look at the key components that make Open Money significant, the Open Money use case, risks to these new systems, and more.

It means a lot that you are following along. I appreciate your support. Here are the posts from this week: