Trump Memecoin Faces Legal Scrutiny Over Potential Gift Law Violation

U.S. consumer advocacy group Public Citizen has urged the Department of Justice (DOJ) and the Office of Government Ethics (OGE) to investigate whether President Donald Trump's official memecoin, TRUMP, violates federal laws prohibiting the solicitation of gifts.

The concern arises from the possibility that foreign entities could anonymously purchase the Solana-based token, potentially constituting a gift to Trump. The TRUMP token was launched at the Crypto Ball in Washington before Trump’s January 20 inauguration and saw a meteoric rise, reaching a $75 billion fully diluted valuation, briefly surpassing DOGE. However, its value plummeted by 76% following the launch of Melania Trump’s own memecoin, MELANIA, which has since dropped 88% from its peak.

Public Citizen’s Bartlett Naylor and Dr. Craig Holman claim Trump’s posts promoting TRUMP on January 17, 20, and 21 may violate federal laws. While the President can receive gifts, soliciting them is prohibited. They highlight that CIC Digital LLC, an entity owned by Trump’s revocable trust, controls 80% of the token.

Public Citizen argues the token offers no tangible product and instead functions as a "digital blockchain receipt," which could be considered an improper gift. The group has requested authorities halt TRUMP token sales and return funds if deemed unlawful.

At the time of reporting, TRUMP was trading at $18.66 with a $3.7 billion market cap. The Block has reached out to the White House, DOJ, OGE, and the Trump Meme project for comments, but no responses have been made public.