Public Citizen Calls for Investigation into TRUMP Memecoin by US Ethics Authorities
Public Citizen, a prominent non-profit organization dedicated to consumer advocacy, has officially requested that the US Office of Government Ethics (OGE) and the Department of Justice (DOJ) launch an investigation into the TRUMP memecoin. This request centers around the possible breach of federal laws that prohibit US President Donald Trump from soliciting gifts.
Inquiry into TRUMP Memecoin by the Department of Justice
On a recent Wednesday, Public Citizen filed a formal complaint urging the OGE and DOJ to scrutinize whether President Trump violated any federal regulations by promoting the TRUMP memecoin. The complaint highlights that federal laws impose strict controls on the acceptance of payments by government officials, including gifts. While the president can receive gifts, soliciting them is prohibited. The Code of Federal Regulations (CFR) outlines exceptions to this rule, but none permit soliciting purchases for personal profit.
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Public Citizen asserts that President Trump’s endorsement of the TRUMP memecoin evidently breaches this prohibition. The complaint indicates that Trump actively promoted the token both before and after assuming the presidency. Specifically, on January 17, Trump launched the official TRUMP memecoin via social media platforms like X and Truth Social. Notably, his post on X was also shared on Inauguration Day and again on Truth Social on January 21. The posts enthusiastically exclaimed:
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to — Have Fun!”
The non-profit’s complaint underscores that President Trump is primarily linked to the TRUMP memecoin, with 80% of its supply owned by CIC Digital LLC, an affiliate of the Trump Organization. This entity is entirely owned by the Donald J. Trump Revocable Trust, of which Trump is the sole beneficiary. The website associated with the token confirms its authenticity as an official Trump product.
Public Citizen argues that President Trump, by not offering an investment or tangible product in return for money, is essentially soliciting gifts for personal gain, which could constitute a legal infraction.
Do Politician Tokens Pose a National Security Threat?
The complaint also delves into a significant concern regarding the potential involvement of foreign entities. Public Citizen highlights the challenge in determining if foreign state actors are indirectly “gifting the president” through memecoin purchases, posing possible national security risks.
Ethereum’s co-founder, Vitalik Buterin, recently echoed these concerns in a post on X. He warned that tokens linked to politicians could jeopardize democracy by serving as conduits for unregulated political bribery, potentially involving foreign nations. Buterin elaborated that such tokens could be privately held, allowing for plausible deniability, thus creating the “perfect” environment for corruption.
Public Citizen warns that the dangers inherent in the TRUMP memecoin could lead to troubling precedents. If President Trump can profit in this manner, other politicians might emulate him, effectively nullifying existing regulations on solicitation and gifts for government officials.
A recent Reuters report disclosed that the entities behind the TRUMP memecoin amassed approximately $100 million in trading fees within a mere two weeks. Analysis from crypto data firms like Merkle Science and Chainalysis estimated that the TRUMP token generated between $86 million and $100 million in fees by January 30, surpassing earlier reports. However, it remains unclear if President Trump personally received any portion of these fees or the extent of the ownership by other entities involved with the memecoin.
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