U.S. government officials have been urged by consumer advocacy group Public Citizen to look into former President Donald Trump’s promotion of the Official Trump ($TRUMP) memecoin. According to the group, Trump may have broken ethical rules by soliciting donations using his position.
Public Citizen Blames Trump, Calls For DOJ Investigation
Public Citizen wrote to David Huitema, the director of the Office of Government Ethics (OGE), and John Keller, the head of the DOJ’s Public Integrity Section, on February 5.
The nonprofit urged officials to examine the TRUMP token and determine whether its promotion violates legal restrictions. The group also raised concerns over the possibility of foreign state actors purchasing the token, which could lead to potential conflicts of interest.
Concerns Over Foreign Influence
Public Citizen’s complaint highlights the global nature of cryptocurrencies and the difficulty in tracking transactions. Unlike traditional financial systems, blockchain-based assets can be traded anonymously, making it challenging to determine who holds significant amounts of TRUMP tokens. There may be moral and legal questions about political influence if foreign companies are purchasing the token.
Public Citizen argues that an investigation is necessary to determine whether Trump’s promotion of the token violates this constitutional safeguard. The DOJ and OGE have been urged to assess whether his actions constitute an illegal solicitation.
Legal Loopholes and Immunity
A 2012 report from the Congressional Research Service states that a sitting president is generally exempt from broad restrictions on receiving gifts.
However, it also clarifies that a president cannot solicit or coerce such gifts or accept them in exchange for official actions. Whether Trump’s promotion of the TRUMP memecoin falls under these provisions remains uncertain.
Complicating the matter further, a 2024 ruling by the U.S. Supreme Court granted presidents presumptive immunity from prosecution over official acts. This decision could limit the impact of any potential legal action against Trump.
If his promotion of the memecoin is considered an official act, he may be shielded from legal consequences. However, if it is classified as an unofficial act, he could still face repercussions.
Political and Market Implications
The DOJ is currently led by Attorney General Pam Bondi, a Trump appointee, while the OGE is under the leadership of David Huitema, who was nominated by former President Joe Biden.
Given the political landscape, the outcome of any investigation remains uncertain.
Meanwhile, the TRUMP memecoin has seen a surge in value, trading at $18.79, up 5.77% in the last 24 hours. This price rise coincides with increased attention surrounding the controversy.
As cryptocurrency continues to play a growing role in political and financial systems, legal experts and regulators will be closely watching how this case unfolds.