Public Citizen urges investigation into Trump’s potential violation of gift solicitation laws

Public Citizen alleges that President Donald Trump may have violated laws prohibiting the solicitation of gifts while in office by promoting his meme coin on social media. 

Therefore, the Consumer advocacy group is calling for a federal investigation into the matter. Per a letter sent to John Keller, Chief of the US Department of Justice’s Public Integrity Section, and David Huitema, Director of the Office of Government Ethics (OGE), Public Citizen accused Trump of violating legal restrictions on soliciting gifts while serving as president.

The organization urged officials to probe into the Official Trump (TRUMP) meme coin and whether foreign state actors may be involved in purchasing the token.

Trump’s meme coin promotion raises legal questions over gift solicitation

A 2012 report from the Congressional Research Service explains that while the President is exempt from many restrictions on receiving gifts, he cannot solicit or coerce gifts from sources nor accept gifts in return for official acts. The report clarifies that the President may accept gifts from the general public, even from prohibited sources, as long as these conditions are not violated.

Just days before taking the oath of office on January 20, Trump announced to his more than 8 million followers on TruthSocial that he was releasing his own crypto meme coin. The token, called Trump, featured an image of him captured shortly after a failed assassination attempt last year: In it, he’s raising his right fist and looking defiant. 

Shortly after that, his wife, Melania, released her own token. Public Citizen has alleged that Trump violated federal laws by continuing to use his social media platform, Truth Social, to encourage his followers to purchase the meme coin after assuming the presidency:

“It appears Trump is not soliciting money in exchange for an investment or tangible product […] but soliciting money in exchange for nothing — that is, asking for a gift that will benefit him personally.” – Public Citizen

Legal and ethical uncertainty looms over Trump’s meme coin investigation

Pam Bondi currently leads the Justice Department, having been appointed as U.S. Attorney General by former President Donald Trump. Meanwhile, former President Joe Biden nominated David Huitema to head the Office of Government Ethics. The investigation into the meme coin is still ongoing, and there is no known outcome after a 2024 US Supreme Court decision that gives the president almost immunity from prosecution of official acts.

This ruling implies that if the Justice Department concludes that Trump has violated the law, he can do the same again without fear of prosecution. But then, if the meme coin promotion is ruled to have been an unofficial act during his time in office, there could be legal consequences.

Bartlett Naylor, Public Citizen’s Financial Policy Advocate, said the meme website has no link to any government office. He also noted that the organization is looking at possible legal ways of suing since there is almost no hope that the Department of Justice or the Office of Government Ethics will act independently.

Public Citizen called for measures such as halting the meme sale and refunding all individuals who purchased the TRUMP coin.

Following its launch on Jan. 17, TRUMP’s market capitalization surged past $15 billion within 48 hours but has since dropped to approximately $3.7 billion at the time of publication. Several US lawmakers and industry insiders have raised concerns that the US president could still orchestrate a rug pull, as the token’s team retains control over 80% of the total supply.