Trump’s Second Term: Accusations of Monetizing the Presidency Resurface

Donald Trump’s return to the White House has reignited concerns about potential conflicts of interest arising from his extensive business empire and new ventures in cryptocurrency and social media. Critics argue that these ventures create avenues for individuals and foreign entities to influence his decisions and policies, effectively "monetizing" his presidency.

Before assuming office, Trump ceded day-to-day management of his business assets to his children. His company asserts that he will have no direct role in decision-making. An external ethics lawyer is slated to monitor the company’s activities, and an independent firm will manage his investments. The Trump Organization has also pledged not to engage in new material transactions with foreign governments and to donate profits from foreign government patronage to the U.S. Treasury.

This arrangement largely mirrors the one in place during his first term (2017-2021). However, ethics experts have consistently criticized it as insufficient to prevent conflicts between his official duties and his business interests. During his previous presidency, foreign dignitaries, business executives, and Republican allies frequently patronized the Trump International Hotel in Washington, D.C., raising concerns about potential influence peddling.

Here are several specific avenues through which Trump’s position as president could financially benefit him and his associates:

Cryptocurrency Ventures: Trump’s launch of cryptocurrency tokens, $TRUMP and $MELANIA, shortly before taking office has drawn considerable scrutiny. These tokens attracted billions of speculative dollars and raised significant ethical questions. Watchdog groups contend that these tokens offer a convenient channel for foreign buyers to curry favor with the president. Companies affiliated with Trump reportedly hold a substantial portion (80%) of the tokens, positioning them to profit significantly from price increases. The tokens generated nearly $100 million in trading fees within two weeks of their launch.

Furthermore, Trump and his affiliates hold a 60% stake in World Liberty Financial, a cryptocurrency platform established last year. Trump has publicly promised to regulate the cryptocurrency industry favorably, and his administration has already been accused of easing enforcement actions against major players in the sector. He has also proposed creating a government-owned "strategic reserve" of cryptocurrencies.

Real Estate and Hospitality: While Trump no longer owns the Trump International Hotel in Washington, D.C., his family is reportedly considering reacquiring the lease on the property, now operating as a Waldorf Astoria.

His Mar-a-Lago estate in Florida has become a prominent venue for Republican Party fundraisers and conservative events, generating significant revenue for Trump. The property was projected to generate $24 million in cash last year. His golf courses have also experienced healthy financial performance, partly due to patronage from political supporters.

Trump has also billed the U.S. Secret Service for lodging and other services provided while protecting him at his hotels and golf courses, despite promises to offer a discount.

Internationally, the Trump Organization announced plans last year to develop Trump-branded towers in Dubai and Saudi Arabia. In 2022, a deal was struck to build a resort in Oman.

Trump has even suggested that the U.S. should clear the war-torn Gaza Strip and develop it into an international beach resort, an idea previously proposed by his son-in-law, Jared Kushner.

Truth Social and Social Media: Trump’s Truth Social platform, publicly traded on Nasdaq, is another potential source of financial gain. The platform’s stock price has been highly volatile, fluctuating in tandem with Trump’s political fortunes. Trump owns more than half of all shares in the company.

His administration has also appointed tech billionaire Elon Musk to a prominent role, overseeing efforts to reduce and reshape the federal workforce, including agencies that regulate Musk’s companies, such as Tesla, SpaceX, and Neuralink.

Musk has consistently praised Trump on X, the social media platform he acquired in 2022. X reportedly paid Trump $10 million to settle a lawsuit he filed after being suspended from the platform in 2021.

Similarly, Meta reportedly paid $25 million to settle a lawsuit filed by Trump after suspending his Facebook and Instagram accounts following the January 6, 2021, attack on the U.S. Capitol. Meta has also scaled back fact-checking efforts that have been criticized by conservatives.

Media and Regulatory Influence: Trump sued CBS News for $20 billion during the presidential campaign, alleging favorable treatment of his Democratic rival, Kamala Harris. The Federal Communications Commission (FCC), headed by a Trump appointee, is investigating the matter. CBS could face pressure to settle the lawsuit as its parent company, Paramount, seeks FCC approval for an $8.4 billion merger with Skydance Media.

The FCC is also investigating ABC News for its moderation of a debate between Harris and Trump, and NBC News for allowing Harris to appear on "Saturday Night Live" shortly before the November 2024 election.

Other Ventures: Amazon is reportedly paying $40 million for a documentary about First Lady Melania Trump, though the details of her compensation are unclear. Amazon also provides cloud computing and other services to the government. During Trump’s first term, his administration faced accusations of favoritism when awarding a lucrative contract to Microsoft, a rival of Amazon.

During his recent presidential campaign, Trump promoted various consumer products, including sneakers and a digital token. Disclosure filings revealed that he earned a $300,000 fee for promoting a Bible published by a country singer.

Oklahoma’s top education official specified that the 55,000 Bibles he sought to purchase for public schools would have to meet specifications uniquely met by Trump’s version, a decision later revised after criticism.

These various ventures highlight the complex web of potential conflicts of interest that Trump’s presidency presents. Critics argue that these ventures create opportunities for individuals and foreign entities to influence his decisions, potentially compromising the integrity of the office. Whether the safeguards implemented by the Trump Organization will be sufficient to mitigate these risks remains to be seen.