TRUMP Memecoin: A Legal Nightmare or Just Another Crypto Trend?
TRUMP Memecoin – On Wednesday, Public Citizen, a consumer watchdog organization in the U.S., filed a complaint with the Department of Justice (DOJ) and the Office of Government Ethics (OGE), urging an investigation into whether Donald Trump violated federal laws prohibiting the President from soliciting gifts in connection with his official memecoin. Public Citizen raised concerns that the nature of cryptocurrency transactions complicates the transparency of foreign state actors potentially “gifting the president” through the purchase of his Trump meme coin.
The Launch of Trump’s Memecoin
The controversial launch of Trump’s official Solana-based memecoin, known as TRUMP, occurred at the premiere Crypto Ball in Washington, just before his inauguration as President on January 20. The event sparked a frenzy of trading, with the TRUMP token reaching a fully diluted valuation exceeding $75 billion, briefly surpassing DOGE, the largest memecoin at the time.
However, this surge in value was short-lived. Following the release of the MELANIA memecoin, backed by First Lady Melania Trump, TRUMP experienced a significant collapse. Both TRUMP and MELANIA tokens saw a steep drop, with TRUMP falling 76% and MELANIA dropping 88% from their respective peaks.
Legal Concerns: Soliciting Gifts and Federal Laws
Public Citizen expressed concerns over Trump’s promotion of the Trump meme potentially violating federal regulations regarding government officials and gifts. According to Bartlett Naylor and Dr. Craig Holman from Public Citizen, federal law strictly regulates payments and gifts to government officials. It specifically prohibits the President from soliciting gifts for personal gain, though certain exemptions exist.
“While the President can receive gifts, he cannot ‘solicit’ them,” the letter noted. Public Citizen pointed to Trump’s posts on X (formerly Twitter) on January 17 and 20, and a post on Truth Social on January 21, suggesting that he might have solicited money for personal benefit rather than for investment purposes or tangible products.
Investigating the Memecoin Sale
Despite the official website of the memecoin stating that it is not sold or distributed by Donald Trump, Public Citizen pointed out that the website mentions CIC Digital LLC—an affiliate of The Trump Organization—as owning 80% of the product. CIC Digital is fully owned by the Donald J. Trump Revocable Trust, where Trump himself is the sole beneficiary.
According to Public Citizen, individuals purchasing a Trump meme are not acquiring a physical product. Instead, they are receiving a “digital blockchain receipt,” similar to a donation, which raises legal questions about whether these transactions constitute improper gift solicitation.
Public Citizen’s Request
Public Citizen has requested that the DOJ and OGE investigate whether the TRUMP token sale constitutes impermissible gift solicitation and that they consider measures such as terminating the sale and returning the funds to buyers.
As of now, the TRUMP token is trading at $18.66, with a market cap of around $3.7 billion.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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