Memecoins Shake Up Capitol Hill: How ‘Hawk Tuah’ and TRUMP Token Are Disrupting Crypto Legislation

Haliey Welch’s viral moment isn’t over yet—this time, it’s making waves in Washington, D.C. The unexpected rise of her “Hawk Tuah” memecoin has drawn attention from lawmakers who are increasingly wary of the memecoin phenomenon, including the controversial TRUMP token tied to the former president himself.

Memecoins Enter the Regulatory Spotlight

Ron Hammond, senior director of government relations for the Blockchain Association, highlighted that memecoins were never a priority in crypto regulation discussions until now. “Two years ago, talks about how to regulate memecoins weren’t a thing. Now they’re mentioned within the first five minutes of conversations,” Hammond told DL News.

This sudden focus could complicate the push for much-needed regulatory clarity in the $3.3 trillion crypto industry. The speculative and volatile nature of memecoins has raised concerns, even among pro-crypto lawmakers and investors.

Legislation at Risk?

Two major bills—one defining crypto market structure and another addressing stablecoins—could be affected by the growing controversy surrounding memecoins.

• FIT 21: This bill aims to grant the Commodity Futures Trading Commission (CFTC) greater jurisdiction over crypto markets. President Trump’s recent nomination of Brian Quintez, a former CFTC commissioner with ties to Andreessen Horowitz, signals a potentially crypto-friendly shift.
• Stablecoin Regulation: Three competing bills propose clear frameworks for stablecoin issuers, allowing both banks and non-banks to participate in issuing dollar-backed stablecoins.

Hammond noted that while memecoins aren’t directly related to these bills, they are shaping discussions on how the government should regulate digital assets. “These market developments do have a very direct impact on how bill text is being drafted,” he said.

BitGalactic’s Take: A Double-Edged Sword for Crypto

From BitGalactic’s perspective, the memecoin craze is a double-edged sword. On one hand, it proves that digital assets have cultural and economic influence. On the other, it risks undermining the industry’s legitimacy in the eyes of regulators.

“While the blockchain community celebrates mainstream adoption, memecoins could derail serious regulatory efforts,” BitGalactic analysts warned. The explosion of joke tokens may cause lawmakers to impose stricter oversight that could stifle innovation in DeFi and legitimate projects.

The ‘Hawk Tuah’ Effect & Trump’s Token Gamble

The wild ride of the HAWK token exemplifies the risks. Welch’s coin soared to a $500 million market cap before crashing to $50 million in minutes, leaving many investors burned.

Meanwhile, the TRUMP token has raised ethical and regulatory concerns, with CIC Digital holding over 80% of the supply. Senator Elizabeth Warren has already called for investigations, labeling it a political cash grab.

For pro-crypto lawmakers, the primary worry isn’t just volatility—it’s token concentration and potential manipulation.

A Defining Moment for Crypto’s Future

Memecoins are now shaping the narrative in Washington, and their impact on crypto regulation is undeniable. The industry must decide: embrace the chaos or push for stronger self-regulation before lawmakers impose harsher restrictions.

BitGalactic analysts caution that this moment could define the future of crypto policy. “If the community wants mainstream acceptance, it must separate speculation from innovation. Otherwise, regulators will do it for them.”