Trump's $12 meme coin sparks ethics concerns

The promotion of the TRUMP (CRYPTO:TRUMP) token by President Donald Trump, a cryptocurrency in which his linked businesses own 80% of the shares, has come under fire for possible conflicts of interest and constitutional issues.

The Solana-based (CRYPTO:SOL) meme coin surged to $12.25 briefly after Trump endorsed it on social media, though it remains 84% below its January peak of $73.4.

The token’s ownership structure, controlled by entities linked to the Trump Organisation, has raised alarms about ethics violations.

Andrew Rossow, a digital media attorney, cited three constitutional concerns: the Emoluments Clauses (prohibiting financial benefits from foreign entities), Separation of Powers (undermining regulatory agencies), and Equal Protection (creating market disparities).

While the TRUMP token’s website claims it is “not an investment opportunity,” its value hinges on Trump’s personal brand.

Critics argue the project exemplifies crypto’s speculative risks, with Luis Buenaventura of GCash noting the market’s diminished enthusiasm despite short-term volatility.

House Democrats have proposed the MEME Act to bar federal officials from profiting from personal crypto assets, following reports that Trump and Melania Trump’s meme coins enriched early investors.

The legislation aims to address concerns that public figures are leveraging their influence for financial gain, a trend analysts warn could normalise unethical practices.

Trump’s crypto agenda, including vows to make the U.S. a “Bitcoin (CRYPTO:BTC) superpower,” has also drawn warnings from the European Central Bank about systemic financial risks.

As regulators debate oversight, the TRUMP token’s trajectory underscores tensions between crypto’s growth and governance challenges.