President Donald Trump’s new memecoin, TRUMP, has caught attention for more than just its price swings. Public Citizen, a consumer watchdog group, has filed a complaint with the Department of Justice (DOJ) and the Office of Government Ethics (OGE) against the digital token.
The group raised concerns that President Trump’s token promotion may violate federal laws about soliciting gifts. With crypto’s ability to hide the trustworthy source of transactions, questions are also being raised about potential foreign influence.
Solicitations, Gifts, and Federal Law
Public Citizen’s complaint revolves around federal laws that regulate government officials, like the president, from accepting gifts. These laws say that asking for gifts is not allowed, although some exceptions exist.
Public Citizen argued that when President Trump promoted the TRUMP memecoin on social media, he asked for gifts, breaking the law. Even though the official website says that Trump does not sell or give out the memecoin. Nevertheless, it shows that CIC Digital LLC, a part of the Trump Organization, owns 80% of it.
Notably, CIC Digital is fully controlled by Donald J. Trump Revocable Trust, making the president its sole beneficiary.
The anonymous nature of crypto transactions raises even bigger questions. Public Citizen is worried that foreign governments could be using TRUMP memecoins as a way to make “gifts” to the president.
Since the transactions are hard to trace, this could open the door to foreign influence in U.S. politics, so they call for an investigation.
Calls for Investigation and Possible Remedies
Public Citizen has requested the DOJ and OGE to investigate whether the promotion of the TRUMP memecoin violates federal gift solicitation laws. The group asks for remedial actions if they find merit in the claim.
This includes halting the sale of the memecoin, returning any funds received, and other legal remedies. The investigation could affect President Trump’s connection to digital assets and the broader relationship between politics and digital finance.
It may set crucial precedents for how these areas intersect in the future.
TRUMP Memecoin: A Rollercoaster Ride
Launched during the premiere Crypto Ball in Washington, President Donald Trump’s TRUMP memecoin quickly generated massive interest. At its peak, the token was valued at over $75 billion, surpassing the popular Dogecoin (DOGE) memecoin.
However, the excitement was short-lived. When First Lady Melania Trump introduced her memecoin, MELANIA, TRUMP’s value fell drastically by 76%. Currently, the token sits at $17.27, down by 7.43%, with a market cap of $3.4 billion as per CoinMarketCap data.
The President’s casual dismissal of the memecoin further contributed to its downward trajectory.
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