Trump’s social media company is exploring a crypto payment service called TruthFi
By Matt Egan, CNN
New York (CNN) — Truth Social, the social media platform owned by President-elect Donald Trump, appears to be exploring a move into the crypto space.
Trump Media & Technology Group filed a trademark application earlier this week for TruthFi, which it described as a cryptocurrency payment processing platform.
The trademark application includes few specifics but lists numerous potential applications for TruthFi, including card payment processing services, asset management, custody service and trading in digital assets.
It’s not clear how far along Trump Media is in evaluating a crypto payment service or whether the Trump-owned public company will ultimately launch such a platform. A move into crypto could be a way to diversify beyond social media.
Trump Media did not respond to a request for comment.
The trademark application illustrates the thorny conflict-of-interest issues raised by Trump’s election victory and his sprawling business empire. Trump and his family members own businesses that stand to gain from crucial decisions his administration will make, including on federal regulation.
“It’s a huge problem but it’s not a Trump specific problem,” said Richard Painter, the top ethics lawyer in the George W. Bush administration. “Just like it’s a huge problem that members of Congress are trading crypto while they fail to pass legislation regulating crypto and accept huge amounts of donations from the crypto industry.
Painter, who is a law professor at the University of Minnesota, said that criminal conflict of interest laws do not apply to the president, vice president of members of Congress. Still, he said Trump should clearly take steps to address the ethical challenges posed by his financial interests.
“President Trump ought to do what every other president has done: Divest personal assets, Trump Organization assets, everything that creates a conflict of interest with his official duties. And that includes Truth Social and crypto,” Painter said.
The news about the trademark comes just weeks after Trump’s election victory, a win powered in part by strong support from a crypto industry desperate for friendlier regulation from Washington.
Soon, Trump will be able to return the favor – while potentially profiting from the crypto boom his election has helped turbocharge.
Trump, who once bashed bitcoin but has since embraced it, promised during the campaign to make the United States the “crypto capital of the planet” and create a national cryptocurrency reserve.
When he takes power in January, Trump is widely expected to tap regulators who will boost the crypto industry, moves that could help the company he owns a dominant stake in.
Trump had vowed to replace one of the crypto industry’s biggest enemies: Gary Gensler, the chairman of the Securities and Exchange Commission. Gensler announced Thursday he will step down on January 20 when Trump is inaugurated. Analysts anticipate Trump will pick a crypto-friendly SEC chair.
The trademark application for a crypto payment service comes just days after the Financial Times reported that Trump Media is in advanced talks to acquire crypto trading platform Bakkt. That report sent shares of Bakkt skyrocketing more than 160%.
Bakkt issued a statement on Tuesday saying it was “aware of the rumors” that appeared in the media about a potential deal but it does not “comment on market rumors or speculation.”
Beyond the potential Trump Media move into crypto payments, Trump has numerous other crypto ventures, including a business launched in September called World Liberty Financial.
Earlier this week, Trump selected Cantor Fitzgerald CEO Howard Lutnick to run the Commerce Department. Lutnick has become a prominent cheerleader for cryptocurrency firm Tether, which has been hit by investor concerns about its operations.
The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
