The prospect of former President Donald Trump winning the 2024 presidential election has sparked concerns about potential conflicts of interest stemming from his ownership of Trump Media & Technology Group (DJT), the company behind the social media platform Truth Social.
While investors are apprehensive about Trump potentially selling his DJT shares after a lockup period expires, ethics watchdogs are particularly worried about who might be buying these shares leading up to the 2024 election or if Trump assumes office again. According to Politico, potential buyers could include foreign actors or individuals seeking to gain corporate advantage.
Dylan Hedtler-Gaudette, Director of Government Affairs at the Project on Government Oversight, emphasizes the significant conflict of interest this presents. While concerns about businesses linked to Trump aren’t new, the existence of a public company during his presidency could amplify the ethical concerns.
Trump Media & Technology Group has implemented rules ensuring his continued control of the company even if he faces imprisonment or assumes the presidency. He retains control even if he sells his stock, as long as he maintains ownership of special shares granting him voting control.
The prospect of Trump owning a media company while in the White House has alarmed ethics experts. Richard Painter, a former White House ethics lawyer, views this as a potentially dangerous situation. He argues that the government should not exert control over the press, and the ownership of social media platforms creates a significant risk of such control.
Trump’s creation of Trump Media followed his ban from other social media platforms. He initially used traditional press releases to connect with supporters, a strategy that proved highly effective. However, concerns arise if he chooses to bypass traditional media outlets and exclusively communicate through Truth Social or other companies he owns.
While most presidents have divested from stocks or placed investments in blind trusts to avoid conflicts of interest, Trump’s position on DJT shares appears unchanged. Previously, Trump’s hotel ownership raised ethical concerns due to the billing practices for government officials.
Analysts believe those seeking favors from Trump or hoping for his support may see increased chances of success by purchasing shares in his company. Furthermore, members of Congress owning DJT shares could see their influence amplified if Trump returns to the White House.
Trump’s continued ownership of Trump Media & Technology Group presents multiple ethical concerns. The potential for the president to own a media company that could profit from his exclusive access, coupled with individuals publicly purchasing shares to demonstrate loyalty, raises significant issues for the future.
The stock price of Trump Media & Technology Group (DJT) has been declining, with shares down 6.7% to $13.70 on Friday. This reflects a 19% year-to-date decrease in 2024.
