Trump TRUMP/USD memecoin leads the cryptocurrency gainers

TRUMP popped over 12%, becoming the top-gaining cryptocurrency over the last 24 hours. The token's trading volume jumped 120% to $1.45 billion

Official Trump TRUMP/USD memecoin led the cryptocurrency gainers on Tuesday, defying the sideways trajectory of blue-chip coins.

What Happened: TRUMP popped over 12%, becoming the top-gaining cryptocurrency over the last 24 hours. The token's trading volume jumped 120% to $1.45 billion, signaling high liquidity and trader interest.

The rally occurred on a day when market heavyweights like Bitcoin BTC/USD and Ethereum ETH/USD were trapped in their respective ranges.

The rise comes just two days before President Donald Trump's gala dinner with the top 220 holders of his meme coin. The event has received widespread media coverage, with critics, particularly from the Democratic Party, accusing Trump of selling access to wealthy and foreign actors interested in his ventures.

The topic was discussed during SEC Chairman Paul Atkins's congressional hearing on Tuesday. Lawmakers questioned Atkins about the meme coin's launch ahead of Trump's inauguration, the upcoming special dinner, and cryptocurrency mogul Justin Sun, the token's largest holder.

Atkins responded by reaffirming the SEC's stance that meme coins should be categorized as collectibles, not securities.

"It's a collectible token; it's not a security token. It's not a Trump venture. It's a token that people can buy and sell on exchanges, and it's not being sold by the Trump family or the Trump administration," stated Atkins.

He further explained that the SEC has no authority to regulate the prices of tokens or intervene in the actions of those handling the token.

"Insomuch as people are buying and selling the token, and it's being traded on exchanges, that would fall under the purview of the CFTC," he added, referring to the Commodities Futures Trading Commission.

The chairman's comments come as the SEC faces increasing pressure from both sides of the aisle to regulate the cryptocurrency industry more effectively.

The Democrats are critical of the agency's perceived leniency towards crypto firms, while the Republicans are urging the SEC to approve more Bitcoin exchange-traded funds.

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In other developments on Tuesday, Coinbase Global (NASDAQ:COIN) said the Department of Justice is investigating a recent cyberattack on its platform, aiming to identify and prosecute the perpetrators.

The probe follows a previous report by the Wall Street Journal, which stated that the DOJ was examining Coinbase's role in the alleged creation of a "pyramid scheme" in connection with the TRUMP token.

However, Coinbase clarified that it is not the subject of the DOJ's investigation.

"We can confirm that the DOJ is investigating the recent cyberattack on Coinbase Pro and is focused on identifying and prosecuting the perpetrators of this criminal activity," a Coinbase spokesperson told Benzinga.

"We are cooperating fully with the investigation and have no further comment at this time."

The report also mentioned that the House Democrats are planning to launch a probe into the actions of Trump and his allies in promoting the token and forging ties with top officials in the Biden administration.

The report noted that the probe will be led by the House Select Committee on Economic Disclosures, which is examining the role of foreign money in Trump's political and business ventures.

The committee's investigation will focus on the marketing and promotion of the TRUMP token, including a lavish gala dinner that Trump is hosting for the token's 220 largest holders at his Mar-a-Lago resort in Palm Beach, Florida, on Thursday.

The report further stated that the probe will also examine how the token came to be held by some of the largest and most influential figures in the cryptocurrency industry, including Justin Sun, the CEO of TRON.

The report concluded by stating that the probe is part of a broader effort by Democrats in Congress to scrutinize Trump's business dealings and his role in spreading disinformation.

The report also mentioned that the Republicans are planning to launch their own investigation into the SEC's handling of Bitcoin ETF applications.

The report noted that the House Financial Services Committee, which is led by Republican Rep. Maxine Waters of California, will hold a hearing on Tuesday to examine the SEC's role in regulating the cryptocurrency industry.

The report stated that the Republicans will question SEC Chairman Paul Atkins about why the agency has yet to approve any Bitcoin ETFs, despite approving ETFs for other assets, such as real estate and aerospace companies.

The report also mentioned that the Democrats will focus their questions on the SEC's response to the recent cyberattacks on Coinbase and other cryptocurrency platforms.

The report concluded by stating that the bipartisan probe into the crypto industry is expected to continue in the coming months, with both parties planning to introduce their own legislation to regulate the sector.

The official Trump memecoin is a token named TRUMP, which is a collectible token and not a security token. The token is not a Trump venture and it is not sold by the Trump family or the Trump