Trump Media & Technology Group, the owner of Truth Social, announced on Wednesday its plans to expand into financial services and potentially invest in bitcoin and other cryptocurrencies.
Following the announcement, shares of Trump Media (DJT) rose by 8%.
The company stated that it intends to launch a fintech brand called Truth.Fi, along with investment vehicles aimed at supporting American growth, manufacturing, energy, and the “Patriot Economy.” This move into fintech was hinted at through a trademark application filed in November.
Given that Trump Media is built around President Donald Trump’s brand, these business moves are expected to raise additional concerns over potential conflicts of interest during his second administration.
Additionally, the company’s board of directors has approved plans to diversify its cash holdings into exchange-traded funds (ETFs), bitcoin, other cryptocurrencies, and crypto-related securities.
“We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we’re moving into investment products and decentralized finance,” said Trump Media CEO Devin Nunes, a former Republican congressman, in a statement.
The company also announced a partnership with Charles Schwab to develop customized, separately managed funds and provide investment advisory services.
Just days before taking office, Trump and First Lady Melania Trump raised concerns among ethics watchdogs and even some in the cryptocurrency industry when they launched a pair of meme coins.
Ethics experts are now voicing additional concerns about Trump Media’s entry into finance and crypto, given that Trump himself oversees federal regulation of these industries.
Trump Media“These business moves create even more opportunities for conflicts of interest: the various agencies that regulate the financial industry will now be controlled by people appointed by President Trump himself,” said Delaney Marsco, director of ethics at the Campaign Legal Center.
“Those people will be faced with questions about how to handle matters that will impact the financial interests of their boss.”
In December, Trump announced that he had transferred his majority stake in Trump Media to a revocable trust, for which he is the sole beneficiary. His son, Donald Trump Jr., serves as the sole trustee.
However, Richard Painter, the former chief ethics lawyer in the George W. Bush administration, argued that this transfer does not mitigate conflicts of interest.
“The president of the United States is getting further and further into the crypto business – while he is invoking executive orders on crypto,” Painter, now a law professor at the University of Minnesota, said in an interview.
Beyond concerns over conflicts of interest, Painter also warned that Trump’s investments could fuel speculative bubbles in the cryptocurrency market, potentially creating systemic risks for the broader economy.
“We have a president who has asserted so much executive power across the board who is himself investing in assets,” Painter said. “This is a situation that could be quite dangerous for our economy.”
Trump Media stated that it anticipates rolling out its Truth.Fi products and services later this year, pending “any necessary approvals by financial regulators.”
