Donald Trump's recent public endorsement of the $TRUMP cryptocurrency led to an increase in its value, but it also raised questions regarding the legal and ethical implications of his actions.
Trump's Endorsement and Market Reaction
On Sunday morning, Donald Trump praised the $TRUMP token on his social network TruthSocial. This statement immediately pushed the token’s price above $12.25. The token recorded a 7.7% increase over the day, reaching $11.67, but it is still significantly below its all-time high of $73.4.
Ethical and Constitutional Concerns
Direct presidential support for a crypto asset in which he indirectly holds significant stakes raises serious ethical questions. Project documentation states that Trump's affiliated companies control 80% of the total token supply. Lawyer Andrew Rossow highlighted three main constitutional issues: violation of the Emoluments Clause, breach of separation of powers, and violation of equal protection under the Fifth Amendment.
Broader Presidential Initiatives
This initiative is part of a broader strategy by Trump to strengthen the US's leadership in the crypto sector. His plans include establishing a strategic bitcoin reserve and reforming monetary policy. Earlier this month, another project associated with the Trump family generated $390 million through token sales.
Donald Trump's endorsement of the $TRUMP cryptocurrency triggered a market reaction but also raised several legal and ethical questions.
