Trump-Driven Policy Ignites MEME Frenzy: How to Ride the Speculative Boom Over Traditional Stock Investing

President Trump’s endorsement of the GENIUS Act for stablecoins, which passed last week, has reignited a frenzy in the crypto world. Ethereum and Circle each surged 20% over the week, while Robinhood climbed 12% and Coinbase rallied 8%. Retail investors are cheering Trump’s growing support for digital assets, chasing hype-driven momentum rather than fundamentals. This speculative wave resembles the 2021 meme stock craze, where small-cap names could skyrocket in a single day on policy alignment or political enthusiasm. And this time, the rally might not be over yet. With Trump expected to embed more crypto and tech-centric policies into his agenda, the spotlight may increasingly shift to small-cap names rather than traditional tech giants. Here's where retail traders might want to focus as the speculative tide rises.

Asset Tokenization

Trump’s crypto advocacy, paired with the IPO buzz around Circle, has thrown asset tokenization into the spotlight. This process converts real-world assets into blockchain-based tokens, sometimes even issuing digital currencies backed by tangible holdings. For example, Circle pegs its USDC stablecoin to U.S. Treasuries, allowing users to transfer funds or trade internationally using tokenized dollars. With the GENIUS Act now in place, more companies are likely to experiment with similar concepts to draw investor attention—potentially fueling a hype cycle, bubble or not.

Many small-cap firms are now diving into asset tokenization. Even if some of these companies eventually prove worthless, retail investors are more focused on momentum. For instance, venture capitalist and close Trump ally Peter Thiel disclosed a 9.1% stake in BitMine Immersive Technologies (BMNR), which uses Ethereum as a treasury reserve—effectively embracing ETH tokenization. BMNR shares once soared 45% last Monday and still ended the week up 4%. A savvy trader buying at the open could have captured a 24% intraday gain. Even if one missed the peak, a three-day window still offered around 7% upside, showing how sustained and persistent the hype can be.

Tokenization isn’t limited to digital currencies. Any asset with publicly recognized value is fair game—including gold. Last week, Above Food Ingredients (ABVE) announced a merger with Palam Global, with plans to tokenize gold as part of the business model. The stock spiked 100% on Thursday alone, underlining the mania.

The strategy is straightforward: when a small-cap company announces a tokenization plan—especially one with ties to Trump or backed by prominent investors—it becomes a speculative buy and can continue climbing as more retail traders pile in, even at elevated levels. It’s also crucial to pay attention to which crypto assets are being tokenized. If the focus is on BTC, ETH, Solana, or XRP, then the price action of those tokens will significantly influence market sentiment. As long as Trump continues to champion the crypto narrative—particularly with the potential for 401(k) access to crypto investments—the rally could have more room to run. Traders can take advantage of the momentum for short-term gains, but must remain cautious. This is concept-driven speculation, not a structural shift, so locking in profits when gains become outsized is critical.

Rare Earth

Beyond tokenization, rare earth metals have re-entered the spotlight—even amid diplomatic overtures with China. Trump has prioritized reducing U.S. reliance on Chinese rare earth imports, and this narrative has real policy traction. The Department of Defense recently became the largest shareholder in MP Materials, with Apple rumored to follow suit. These moves go beyond industrial planning; they’re political signals. When the administration targets a sector, major corporations often follow to stay in the government’s good graces. Investors should closely watch for these policy cues, as they could trigger sector-wide rallies, with small-caps potentially benefiting more than the mega-cap names.

Nuclear

Nuclear energy could become Trump’s next strategic focus. With growing AI demand driving energy consumption, Trump is expected to promote advanced nuclear technology as a solution. His upcoming keynote, titled “Winning the AI Race,” may outline plans to accelerate data center construction and energy production. Nvidia’s market cap has grown so large that additional upside may be limited, pushing retail investors to seek out affiliated small-cap names. Meanwhile, speculative plays in the nuclear energy sector could stand to benefit significantly. As Trump champions futuristic industries, nuclear could be the next breakout theme.

Space and AI-Driven Military Expansion

Although Trump has yet to fully act on space-related initiatives—especially after his falling out with Elon Musk—investors shouldn’t ignore the possibility. As tensions with China grow, a renewed space race seems increasingly likely. Trump’s detachment from Musk could create new opportunities for companies outside of SpaceX, as they may be better positioned to win federal contracts. The space domain also intersects with military strategy. Trump could pursue the development of AI-enabled defense technologies, with space playing a critical role in global surveillance and combat systems. Once the U.S. acts, other countries may feel pressured to follow, reinforcing the strategic significance of these sectors.

Robotics

Robotics is another promising area, as it requires the integration of advanced AI with high-level manufacturing capabilities. While the industry still lacks fully matured consumer products, companies like Tesla and Nvidia have already established leadership in this space. President Trump now appears to favor Jensen Huang over Elon Musk, but for the sake of long-term prosperity, he is expected to increase support for the robotics sector. This includes not only foundational service applications but also potential military uses. By doing so, the U.S. could further solidify its global leadership in robotics innovation.

These areas may define Trump’s tech and defense priorities in his second term. Some are already sparking speculative surges, while others remain poised for expansion. As Trump embraces deregulation and bleeding-edge innovation, retail traders will continue to find greater opportunity in speculative plays rather than in established tech behemoths. But caution is key. Deregulation often fuels bubbles, and crypto markets, in particular, appear increasingly risky. Be ready to lock in gains or cut losses quickly. The mania may offer profits—but only for those who stay sharp.