Shares in the Trump family’s latest cryptocurrency venture, American Bitcoin, officially debuted on the stock market Wednesday, raising significant ethical questions about potential conflicts of interest due to the family’s ties to the current administration. Co-founded by Eric Trump, the firm aims to accumulate bitcoin primarily through computer mining and strategic purchases. The stock price initially surged by up to 39%, reaching approximately $9.60 before settling at $8.04 by the end of the trading day, slightly down from its opening at $9.22.
The launch of American Bitcoin intensifies scrutiny over the Trump family’s financial pursuits in the cryptocurrency sector, particularly as the administration appears to loosen regulatory constraints on the budding industry. Recent disclosures indicate that the family could realize substantial profits from their cryptocurrency activities, framing this latest development against a backdrop of ongoing ethical debate.
On Monday, the inaugural sales of a digital token linked to World Liberty Financial, another crypto entity co-founded by the Trump family, reportedly generated $5 billion in paper wealth for insiders based on their holdings. Additional concerns were voiced following a deal announced last week between Trump Media and Technology Group—parent company of President Donald Trump’s Truth Social platform—and Crypto.com, aimed at accumulating their native token, Cronos (CRO), which climbed nearly 69% after the announcement.
Calculations by Bloomberg News indicated that Eric Trump’s stake in American Bitcoin could be valued as high as $600 million, with Donald Trump Jr. also holding an undisclosed stake. Ethics experts are raising alarms, with Virginia Canter, chief counsel for ethics and anticorruption at Democracy Defenders Action, flagging the evident conflict of interest. Canter emphasized that, beyond the direct financial benefits, the President’s regulatory powers could shape the competitive landscape of the crypto market, potentially disadvantaging other participants.
Senator Elizabeth Warren criticized the launch on social media, labeling it a blatant act of corruption. Meanwhile, a representative from the Trump Organization did not provide comments addressing these ethical concerns.
Estimates of the family’s earnings from cryptocurrency ventures are variable; reports by Reuters suggested they might have profited up to $500 million from the World Liberty platform. This figure fluctuates based on crypto market dynamics, with indications of substantial investments in recent months from global firms into Trump-affiliated projects.
White House responses to ethics inquiries have been staunch, with press secretary Karoline Leavitt characterizing allegations of conflict as irresponsible, asserting that the President and his family maintain integrity in their business dealings. She reiterated the administration’s commitment to positioning the U.S. as the forefront of the crypto landscape.
Eric Trump recently lauded the support his father has received from the bitcoin community, noting its growing influence within the political arena, as exemplified by significant donations to super PACs aligned with crypto interests. The Trump brothers have continued to expand their business portfolio since their father’s presidency, recently partnering with New America, a firm focused on revitalizing domestic manufacturing and innovation. They are set to receive a combined 5 million shares in the venture as it aims to raise $300 million before going public.
As the cryptocurrency landscape continues to evolve, the intersection of the Trump family’s business activities and political clout raises pressing questions about accountability and ethical governance within this burgeoning sector.
