A US-based think tank has requested the Department of Justice to investigate the legal status of the new memecoin launched by President Donald Trump prior to taking office in January. Allegations suggest that this digital asset might violate federal laws regulating donations to government officials.
The Launch of the Memecoin and Market Status
Reports indicate that President Trump introduced the official TRUMP memecoin in mid-January, which rapidly increased in value. Currently, this digital asset ranks 41st in the industry based on its market value. This development is viewed as a significant movement within the digital asset market.
Legal Claims and Criticism
Officials from the consumer advocacy group Public Citizen expressed concerns in a letter to the Department of Justice and the Office of Government Ethics. They argue that the memecoin may exceed legal limits for donations to government officials. The statement notes that the memecoin is not presented as an “investment opportunity, investment contract, or any security” on its official website.
“When a person sends money for the Trump memecoin, they do not purchase a tangible product. Instead, a digital receipt is obtained through blockchain. This situation resembles the traditional method of making donations,” said Public Citizen representatives.
The allegations also raise questions regarding the constitutional prohibition against accepting gifts from foreign governments and the controversial nature of donations. This situation sparks inquiries into the legal implications of international interactions in digital currency transactions.
Additionally, Ethereum 
$2,074 founder Vitalik Buterin warned that political digital assets could serve as “limitless political bribery tools.” The ongoing developments are being closely monitored for their impact on legal assessments and market dynamics. Insights from authorities may aid in clarifying the legal framework surrounding digital assets, as market players keenly observe the implications of forthcoming decisions.
