A progressive think tank has urged the U.S. Department of Justice (DOJ) to scrutinize the legality of the meme coin TRUMP TRUMP/USD launched by President Donald Trump.
What Happened: The nonprofit consumer advocacy group, Public Citizen, has raised questions about the legality of the President’s new cryptocurrency TRUMP meme coin.
The meme coin, which was launched in mid-January, just before Trump assumed office, quickly escalated in value, securing its position as the 41st-largest digital asset by market cap.
In a communication to the DOJ and the Office of Government Ethics, officials from Public Citizen proposed that the meme coin might be in violation of federal laws that oversee gifts to government officials.
They highlighted that the TRUMP website clearly states that the meme coins are not meant to be an investment opportunity or security of any kind, but rather a digital receipt.
Also Read: Solana Skyrockets, Sees 15% Surge Following Launch Of Trump-Themed Meme Coin
They argue that this is similar to asking for money in return for nothing, which could be interpreted as a personal gift to the President.
The Constitution prohibits accepting anything of value from foreign state actors, and due to the nature of cryptocurrency exchanges, it’s challenging to ascertain whether foreign entities are gifting the President by buying the memecoin.
Public Citizen’s skepticism is not solitary. Last month, Ethereum ETH/USD founder Vitalik Buterin denounced political coins as “vehicles for unlimited political bribery,” although he did not mention any specific token.
Why It Matters: The concerns raised by Public Citizen and others underscore the complex legal and ethical issues surrounding political cryptocurrencies.
The involvement of high-profile individuals such as President Trump further complicates matters, as it raises questions about the potential for misuse of such platforms for personal gain or influence.
The outcome of the DOJ’s investigation could have significant implications for the future of political cryptocurrencies.
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