Mark Cuban might be one of Dogecoin's most famous fans, but the "Shark Tank" star isn't too keen on the meme coins launched by President Donald Trump this weekend.

In a post on X (formerly known as Twitter), Cuban pushed back against the claim that Trump's official meme coin (TRUMP) is a long - term positive for the digital asset space, arguing that after the meme coin's debut, the industry will now struggle to legitimize itself.

Among U.S. lawmakers, crypto - friendly politicians are calling for regulation to provide clearer rules of the road for the industry. Bills like the "21st Century Financial Innovation and Technology Act," or FIT21, if passed, could provide a pathway for digital assets to gain regulatory approval.

FIT21 passed the House of Representatives last May but remains stalled in the Senate. It aims to more clearly define digital assets legally and place them under the purview of the Commodity Futures Trading Commission. If signed into law, the bill could help clarify the legal gray area in which much of cryptocurrency exists, while removing what advocates say is one of the biggest barriers to greater financial institution involvement: uncertainty.

While Trump is expected to sign a series of executive orders that could effectively achieve the same goal, unlike executive orders, signed legislation cannot be overturned by the next commander - in - chief.

To pass digital asset regulation in both the House and the Senate, bipartisan support is likely needed. The Republicans currently hold a one - seat majority in the House, and they would need seven Democratic votes to pass most bills in the Senate.

Cuban wrote that instead of encouraging lawmakers to revise existing securities laws to be more accommodating to crypto projects offering tokens to U.S. buyers, Trump's meme coin sets the standard that investors don't need to "have some understanding of what they're buying."

"Gary Gensler must be laughing his head off," he added, referring to the now - departed chair of the U.S. Securities and Exchange Commission and a crypto villain. "Any registration requirements just went out the window."

Eighty percent of the supply of Trump's meme coin is held back by CIC Digital LLC, the same company that facilitated the sale of Trump's official NFTs and other merchandise, as well as Fight Fight Fight - Fight LLC. The tokens will be unlocked over the next three years, and the companies behind Trump earn revenue from the associated trading fees of the tokens.

Eli Cohen, general counsel at the decentralized finance platform Centrifuge, told Decrypt, "This launch will make everything the U.S. does from now on look like self - dealing." "There's clearly an obvious conflict: Will regulators think we're doing this to help Trump and his meme coin, or will they look at what the actual legislation is?"

When it comes to Dogecoin, Cuban posited that in 2021, the meme coin became "legitimate" and was no longer just a joke. A few months ago, he stood by his love for the canine - themed cryptocurrency while admitting that most meme coins are a high - stakes game of musical chairs.

As one of the fastest - growing tokens in the cryptocurrency space, Trump's price hit an all - time high of $73 on Sunday but quickly declined after First Lady Melania Trump launched her own meme coin. As of the time of writing, Trump's price has fallen 40% in the past day to $40.

Representative Ro Khanna (D - CA) said, "Elected officials must be legally prohibited from having meme coins." Writing on X on Sunday, he added that they should be regulated by the SEC like gambling.

It took years for Dogecoin to emerge as the $53 - billion meme coin. But over time, many projects have tried to replicate the formula — trading on hype rather than fundamentals — and now that includes a president - backed project.

Cohen, speaking about Trump and Dogecoin, said, "Clearly, the rules around them are a bit different in terms of lock - ups, the amount allocated to the market, and the amount allocated to insiders." "But other than that, I don't think they're that different."