White House Denies Conflicts of Interest Amid Trump’s Crypto Ventures
The White House has reiterated that President Biden is not embroiled in any conflicts of interest, with Press Secretary Karoline Leavitt asserting this week that “neither the President nor his family has ever engaged, nor will they engage, in conflicts of interest.” This response comes as inquiries continue regarding the interplay between Biden’s extensive business dealings and his responsibilities as president. In contrast, President Donald Trump’s financial interests are notably tied to the burgeoning cryptocurrency sector, an area his administration has been actively promoting.
Trump’s Business Ties to the Crypto Industry
President Trump’s business ventures are heavily intertwined with the cryptocurrency landscape. He has memecoins named after himself and his wife, and a company he established with his sons and a top diplomat has developed a stablecoin along with digital tokens. Moreover, the publicly traded entity that oversees his social media platform is shifting its focus to become a digital asset treasury, with plans to acquire various cryptocurrencies. Trump has expressed ambitions to make the United States the leading hub for crypto, with his family’s financial success increasingly reliant on digital currencies, generating substantial earnings while he serves in office.
World Liberty Financial and New Token Developments
Recently, Trump, along with his business partner Steve Witkoff and their sons, co-founded World Liberty Financial, which has commenced trading a new digital asset called WLFI. This token enables traders to participate in governance decisions related to the company, with the Trump family being its largest stakeholders. WLFI is traded on Binance, a major cryptocurrency exchange whose CEO is seeking a presidential pardon. World Liberty Financial has also introduced a stablecoin pegged to the US dollar, dubbed USD1, aimed at facilitating international transactions, with MGX, an Emirati-backed investment firm, being one of its initial users.
Trump Family’s Expanding Crypto Ventures
While serving in office, Trump and Witkoff hold “emeritus” cofounder titles at World Liberty Financial, with their sons actively promoting the venture globally. Eric Trump has recently been promoting cryptocurrency in Asia, while his brothers, Donald Jr. and Eric, are also associated with a bitcoin mining enterprise that recently went public, reportedly making Eric a billionaire on paper, as noted by Forbes.
Transforming Trump’s Media Company into a Digital Asset Treasury
Trump’s media entity, trading under the ticker DJT, has amassed a portfolio worth billions in bitcoin and aims to transition into a digital asset treasury, planning to gather substantial holdings in Cronos, another cryptocurrency. As Donald Trump Jr. pointed out earlier in the year, the family faces constant accusations, prompting them to continue pursuing their business interests without restraint. “We’re not going to lock ourselves away; we’re just going to engage in the business,” he stated during a conference in Qatar.
Wealth Accumulation and Ethical Considerations
The trading of World Liberty Financial’s WLFI token could represent a significant milestone. Currently, the Trump family is unable to sell their holdings in the stablecoin, meaning their amassed wealth remains theoretical. The Wall Street Journal estimates their crypto wealth at over $5 billion, suggesting that Trump’s digital asset holdings may soon surpass his real estate wealth. Nonetheless, this scenario raises ethical concerns as the president stands to gain financially from policies that may benefit his business interests.
Potential Conflicts with Foreign Investments
Ethics advocates have long warned about the risks of foreign entities utilizing Trump’s businesses to exert influence. The Constitution prohibits US officials from accepting payments from foreign governments, but this issue has not been extensively challenged in court. During his first term, when the Supreme Court had a chance to address an emoluments case involving foreign officials staying at Trump’s hotels, it declined to act since he had just vacated office. Now, as Trump re-enters the political scene, the stakes are higher, particularly with commitments from foreign investors, such as a $2 billion investment in Binance tied to the stablecoin from his company.
Diverse Business Interests Beyond Cryptocurrency
Trump’s business portfolio extends beyond cryptocurrency, as the Trump Organization is also engaged in various real estate projects across the globe, particularly in the Middle East and Asia. Real estate investments tend to be more straightforward for investors compared to the complexities of cryptocurrencies. The future value of WLFI tokens remains uncertain until trading becomes available for the Trump family.
Financial Gains from Memecoins
The Trump family’s involvement in memecoins further diversifies their cryptocurrency interests. The $Trump memecoin, despite its low value, has generated significant revenue for Trump, reportedly exceeding $320 million from its sales, with many investors being foreign nationals. Notably, a separate memecoin, $Melania, also benefits the Trump family. Justin Sun, a prominent crypto entrepreneur from China, has heavily invested in the $Trump coin and serves as an advisor to World Liberty.
Government Support for Cryptocurrency Initiatives
President Trump is actively advocating for cryptocurrency by initiating the creation of a strategic crypto reserve, similar to the US’s strategic reserves for oil and gold. He has also conveyed to regulators and the SEC that investors can expect minimal government interference during his administration. According to Gallup, the number of US investors with at least $10,000 in cryptocurrency has surged to 17%, a significant increase from just 2% in 2018. Demographics indicate that younger men, college graduates, and conservative individuals are most inclined to invest in crypto, yet a substantial 64% of investors report having no interest in entering the cryptocurrency market.
Political Divide on Cryptocurrency Perception
The growing involvement of Trump in cryptocurrency highlights a widening political divide regarding investment in this sector. While both Democrats and Republicans viewed crypto as a “high risk” in 2021, skepticism among Democrats has risen sharply, with around two-thirds now considering it very risky. In contrast, the perception among Republicans has largely remained stable, reflecting a consistent viewpoint on the risks associated with cryptocurrency investments.
