The watchdog organization Citizens for Responsibility and Ethics in Washington (CREW), which filed a lawsuit against Donald Trump during his first term, is preparing new legal actions. This was reported by the group’s vice president, Jordan Libowitz, to Fortune.
According to Libowitz, the recent business moves by the elected head of state, including the launch of the TRUMP memecoin and increasing his stake in Truth Social, create a significant legal precedent, even if no direct violations of the law are found.
As during Trump’s previous presidency, CREW specialists are concerned about potential violations of the U.S. Constitution’s clause prohibiting politicians from receiving “gifts” from local and foreign government representatives.
“There are many things that fall into the realm of absolutely unethical, but also probably absolutely legal,” the specialist noted.
During Trump’s first term, critics argued that interested parties could book rooms in his hotels to gain the president’s favor. Now, experts believe that purchasing the memecoin could serve a similar purpose.
According to Libowitz, CREW staff are currently only considering possible lawsuits and are unsure whether direct violations by the elected president will be found.
“There are not many precedents where a president was the owner of a publicly traded asset, especially a memecoin,” the expert explained.
He added that conflict of interest laws passed by the U.S. Congress after the Watergate scandal do not apply to presidents. This drastically reduces the chances of Trump facing legal consequences for his actions.
In January, the DeFi project World Liberty Financial, associated with the 47th President of the United States, acquired a range of cryptocurrencies worth $112.8 million.