Trump's new crypto coin sparks ethics concerns

U.S. President Donald Trump’s launch of a crypto token creates new conflict-of-interest concerns.

U.S. President Donald Trump's launch of a crypto token shortly before his inauguration on Monday creates new conflict-of-interest concerns, ethics experts and industry insiders said.

Trump has pledged to hand management of his assets to his children, but the crypto asset is raising particular concerns due to its ability to quickly attract billions of speculative dollars with little transparency.

The companies behind the "meme coins" $TRUMP and $MELANIA, for first lady Melania Trump, said they are not investments or securities but are an "expression of support."

The tokens follow Trump-branded non-fungible tokens, sneakers and a Bible, among other items he has launched.

Ethics advisors and industry experts say this investment is different because his administration will regulate an industry in which he has a stake through the new token, and one where any value is arguably tied to his presidency.

The companies behind the Trump token, CIC Digital LLC, an affiliate of the Trump Organization, and Fight Fight Fight LLC, co-owned by CIC Digital, collectively own 80% of the tokens, meaning that Trump-linked businesses could have gained $8 billion worth of crypto over the weekend.

Danielle Brian, head of the watchdog group Project On Government Oversight, said Trump's moves into crypto are concerning given the industry's loose oversight. Besides being "a blatant financial conflict of interest on behalf of the president ... it is deepening his engagement in a world that raises real national security concerns," she said.