$TRUMP Hi, I'm Javeria, and President Donald Trump is facing accusations from Public Citizen, a consumer advocacy organization, for allegedly violating federal law by promoting his memecoin on social media, effectively soliciting gifts, and potentially creating a national security risk .Public Citizen, a consumer advocacy organization, has accused President Donald Trump of violating federal law by promoting his memecoin on social media, effectively soliciting gifts. The group has urged the US Department of Justice and the Office of Government Ethics to investigate the matter ¹.
At the center of the controversy is the "Official Trump (TRUMP) memecoin," which was launched just days before Trump took office. Public Citizen alleges that Trump's continued promotion of the memecoin on his social media platform, Truth Social, constitutes a solicitation of gifts, which is prohibited under federal law ¹.
The organization points out that while the president is exempt from certain gift restrictions, he is not allowed to solicit gifts or accept them in exchange for official acts. Public Citizen argues that Trump's promotion of the memecoin, in which he has a significant financial stake, crosses this line ¹.
Furthermore, Public Citizen expresses concern that foreign state actors may be purchasing the memecoin, potentially creating a national security risk. The organization cites Ethereum founder Vitalik Buterin's warning that politician tokens like Trump's memecoin could be used as vehicles for unlimited political bribery, including from foreign nation-states ².
The US Supreme Court's 2024 decision, which made the president presumptively immune from prosecution over official acts, may limit the potential consequences for Trump. However, Public Citizen is exploring alternative avenues for litigation, including the possibility of a congressional investigation ¹.
In response to the allegations, Public Citizen has called for the termination of the memecoin sale and the return of funds to all who purchased the token. The organization's Financial Policy Advocate, Bartlett Naylor, stated that the group is looking at "realistic venues that could bring litigation" given the unlikely prospect of action from the Department of Justice or Office of Government Ethics.
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