Eric Trump Confirms $TRUMP Token Acquisition by Family-Linked DeFi Firm, Sparking Ethics Debate

The Trump family’s connection to the cryptocurrency world is deepening, following Eric Trump’s latest announcement that World Liberty Financial a DeFi venture affiliated with the Trump family, will acquire a “substantial stake” in the controversial $TRUMP memecoin.

On June 6, Eric Trump took to X (formerly Twitter) to declare, “I’m proud to announce that the $TRUMP Meme Coin has aligned with @WorldLibertyFi.” While exact investment figures were not disclosed, the move is being framed as part of World Liberty Financial’s long-term treasury strategy, reinforcing its presence in the decentralized finance space.

The firm already holds a portfolio that includes Bitcoin (BTC), Ethereum (ETH), TRON (TRX), and several stablecoins. The decision to add the $TRUMP token which derives much of its appeal from brand association rather than traditional fundamentals, is seen as a symbolic yet strategic gesture to bridge political branding and blockchain utility.

Muted Market Response and Political Overtones

Despite the headline-grabbing nature of the announcement, market response to the $TRUMP token was tepid, with minimal movement in price following the news. Analysts interpret the flat performance as a sign of caution or skepticism, suggesting that the announcement may carry more political marketing weight than financial merit.

The announcement comes just weeks after a private, invitation-only dinner held at one of Donald Trump’s golf resorts in Virginia, attended by the top 220 $TRUMP token holders. The event reportedly included a surprise appearance by the former president himself, fueling speculation about how deeply involved he is in the project.

Rising Conflict of Interest Concerns

The move has triggered alarm bells on Capitol Hill. Democratic lawmakers have expressed concern over the ethical implications of Donald Trump potentially profiting from a memecoin that bears his name, particularly as he remains a frontrunner in the upcoming presidential election.

Critics argue that Trump’s growing interest in cryptocurrency, coupled with his advocacy for industry deregulation, raises the risk of serious conflicts of interest should he return to the White House. His apparent endorsement of the $TRUMP token is now being viewed not just through a financial lens but as a political signal in an election year where digital assets are becoming a hot-button issue.

Crypto Meets Politics: The Bigger Picture

In a related twist, a fund manager recently filed to launch a spot Bitcoin ETF tied to Trump’s Truth Social platform, further blending political branding with digital finance. While it’s unclear whether the U.S. Securities and Exchange Commission will approve such a product, the effort marks another step in the convergence of crypto assets and traditional investment vehicles.

As November approaches, Trump’s crypto involvement is expected to remain in the spotlight not only for its potential impact on digital asset markets but also for its influence on the regulatory landscape.