A Presidential “Gift” or a Crypto Con? Donald Trump’s latest adventure into the world of cryptocurrency has stirred up some serious drama. This time, the controversy revolves around his promotion of his very own memecoin, TRUMP, and allegations that he might be violating the law by using his position to solicit “gifts” from the public. Yes, you read that right—a gift in exchange for a digital token with little tangible value. Let’s dive into the situation that’s causing waves across the political and financial landscapes.
The Launch: Memecoin Meets the Presidency Before Donald Trump even took office, he had the idea to launch his memecoin, but it wasn’t until just days before Inauguration Day, in January 2021, that it officially debuted. And while many people might have thought the memecoin would fizzle out, it’s managed to grab headlines once again—this time under the scrutiny of Public Citizen, a watchdog group calling on government officials to investigate Trump’s actions.
Public Citizen isn’t just watching from the sidelines. They’ve written a letter to the U.S. Department of Justice and the Office of Government Ethics (OGE) asking for a full-on probe into whether Trump violated federal laws by promoting his memecoin after taking office. According to them, these actions could be considered a violation of laws surrounding the solicitation of gifts.
What’s the Problem? The issue centers on the rules about government officials, especially the President, accepting “gifts.” While Trump is exempt from certain restrictions on gifts—meaning he can accept gifts from the public even if they come from so-called “prohibited sources”—there’s a catch. The key rule is that the President is not allowed to solicit or pressure anyone into offering a gift, especially in return for official acts. According to Public Citizen, Trump’s social media posts calling on his followers to buy the memecoin could qualify as solicitation since he’s asking for money without offering anything in return—except, of course, the token itself.
It’s not the first time Trump has faced allegations of using his public office to personally benefit, and this time, the controversy is tied to cryptocurrency. Public Citizen is going as far as suggesting that foreign state actors might even be jumping on the bandwagon and buying up the TRUMP coin, a concern that, if true, could add a whole new layer of legal complexity.
A Token with a Sky-High Market Cap—For a While, Anyway Let’s talk numbers. The TRUMP memecoin launched on January 17, 2025, and its market capitalization skyrocketed to over $15 billion in less than two days. That’s a lot of digital money flying around! But, as we know with crypto, things can be volatile. As of the latest reports, the coin’s value has dropped significantly, sitting at around $3.7 billion.
Now, some lawmakers and financial experts are raising red flags about the possibility that Trump and the team behind the TRUMP token could be trying to pull a “rug pull” on investors—essentially, making off with their funds. One point of concern is that the team behind the memecoin controls a whopping 80% of its total supply. That could give them a huge amount of power over the market and might put investors at serious risk.
A Supreme Court Ruling Complicates Things While Public Citizen is pushing for an investigation, there’s a major complication: a recent 2024 Supreme Court ruling. This decision effectively granted the President “presumptive immunity” from prosecution when it comes to official acts—meaning that even if Trump is found to have broken the law, it’s unclear if he could face any legal consequences.
But that doesn’t mean all hope is lost. If Trump’s memecoin promotion is deemed to be unofficial—i.e., something he’s doing outside the scope of his role as President—there’s still a chance he could face repercussions. For now, Public Citizen is focusing on exploring other legal routes, such as potentially taking action in the courts.
Public Citizen’s Demands: Refund and Shut It Down! So, what does Public Citizen want to happen? In their letter to the authorities, the group called for a few things: first, they want the sale of the TRUMP coin to be halted immediately. Second, they’re demanding that all funds raised from the memecoin sales be returned to the people who bought in. While their hopes may be high, they’ve acknowledged that it’s unclear whether the Department of Justice or the OGE will take action—especially given the tricky legal landscape created by the Supreme Court’s ruling.
Looking Ahead: Will This All Fizzle Out or Get Messy? As this bizarre situation unfolds, the future of Trump’s memecoin remains uncertain. Will it continue to gain traction as a crypto novelty, or will the investigations and potential lawsuits drag it down? If nothing else, the TRUMP token saga is a reminder of the ever-evolving intersection between politics, law, and cryptocurrency. And with the value of the memecoin in flux and questions surrounding its legitimacy, one thing is for sure—this is a drama we’ll be watching closely in the months ahead.
Stay tuned, folks!
