Trump’s expanding business ties come under ethics spotlight

President-elect Trump is entering office with a wider array of investments and potential conflicts of interest than was seen during his first term, setting the stage for greater scrutiny of his dealings.

Trump generally has the same empire of hotels and real estate holdings from the first term that sparked criticism that foreign governments could seek to influence him through his business ties.

But since leaving office, Trump has augmented his business ventures, launching a social media platform that stands to benefit from his return to the White House while getting involved in cryptocurrency and signing new deals across the globe.

“There are a number of a number of ways that he has expanded and broadened his portfolio, particularly in social media and in crypto, where the president of the United States has lots of ability to make policy decisions that would benefit his financial bottom line and do so potentially to the detriment of the American public,” said Donald Sherman, chief counsel at Citizens for Responsibility and Ethics in Washington (CREW).

The Trump campaign did not respond to requests for comment for this story.

Trump ahead of his first term turned over control of the Trump Organization, which runs his hotels and properties, to his sons. He did not divest from them or put them in a blind trust, breaking with a precedent set by past presidents.

This time, it’s not clear Trump will even go that far. Shortly after he won the election, he blasted the idea that he would sell the media company that oversees Truth Social.

“I HAVE NO INTENTION OF SELLING!” Trump said in a Nov. 8 message on Truth Social, calling the site “an important part of our historic win.”

Trump’s past practices have already put the spotlight on his sources of income, triggering criticisms they run afoul of constitutional limitations on the income presidents can receive.

“The President-elect this time around doesn't appear to be interested or willing to create any sort of firewall or to remove himself from his business operations or divest from any holdings to decrease the appearance of those conflicts of interest,” said Danielle Caputo, an ethics expert with the Campaign Legal Center.

Social media

Trump’s social media company presents the same problem as his hotels, according to ethics and legal experts. Both provide an avenue for foreign governments or other interests to seek favor with the Trump administration.

While Trump owns a majority of shares in Trump Media & Technology Group, anyone can buy stock in the publicly traded company or buy advertising on Truth Social.

“Saying to Trump ‘I invested in Truth Social’ is essentially what we saw foreign governments do when they stayed at the Trump Hotel, right? It gives you a sort of talking point and gives you a way to literally buy a chit with this president,” Sherman said.

“This president has demonstrated time and time again that the best way to get an audience with him, the best way to get his attention, is by spending your money in a way that directly lines his pockets.”

Like with his hotels, spending through his social media company is also likely to raise concerns over possible violations of the emoluments clauses of the Constitution. Those provisions bar a president from accepting money from a foreign government without seeking permission from Congress and entirely bars accepting money from government agencies or states.

Trump’s post indicating he would refuse to sell his shares highlights how much he stands to gain from increased interest in his company. His announcement prompted a surge in the company’s stock, netting a $500 million boost in his own stock in just a few days.

Trump has also tapped Elon Musk, owner of the social platform X, to co-lead a presidential advisory commission, the "Department of Government Efficiency," bringing the owner of another major social media company into his fold.

In practice, this leaves two social media moguls, who while friendly are also competitors, with potential sway over entities that could regulate their businesses.

Sherman raised the prospect that Trump’s election could prompt departments across the government to join Truth Social — along with other businesses and entities that might seek Trump’s favor.

Truth Social did not respond to a request for comment.

Crypto

While initially skeptical of digital currency, Trump has since vowed to make the United States the “crypto capital of the planet” and put an end to what he calls the “unlawful and unAmerican crypto crackdown.”

It’s a pivot that comes as the Trump family has gotten more involved in the sector themselves.

Trump has promoted World Liberty Financial, and during a September event alongside his sons, executives for the company said some tokens would be reserved for the family.

It’s a confusing arrangement.

A photo of Trump is featured prominently on World Liberty Financial’s site, and he and his sons are listed as members of the team, even though a disclaimer later says they are not employees or officers there and that the company is “not political and not part of any political campaign.”

Nonetheless, the disclaimer adds that “affiliates, including Donald J. Trump has or may receive approximately 22.5 billion tokens from World Liberty Financial, and will be entitled to receive 75% of net protocol revenues.”

World Liberty Financial did not respond to a request for comment.

Richard Painter, who served as George W. Bush’s chief ethics lawyer from 2005 to 2007, noted that the Trump family has been getting into crypto “in a big way” at a time where new regulations could have a big impact on investors’ bottom lines.

“That's a very unregulated business with an enormous amount of sway in Washington,” he said, noting that companies have made big donations on both sides of the aisle.

“And what’s the regulatory framework? We don’t know.”

Trump is also in talks to buy Bakkt, a crypto trading platform headed by former Sen. Kelly Loeffler (R-Ga.), who is the co-chair of Trump’s inauguration committee.

Bakkt did not respond to request for comment.

Hotels and golf deals

Trump’s hotels and properties saw significant spending from foreign countries and even government agencies during his first term, a dynamic likely to continue in his second.

An investigation by House Oversight and Accountability Committee Democrats found Trump properties took in some $7.8 million from foreign entities in 20 countries — a figure reached after reviewing only a subset of documents collected from Trump’s accounting firm.

Trump also charged the Secret Service some $70,000 to stay in his hotel over another 11-month period for which the committee was able to review records.

Trump has given up his lease for the Washington hotel that was a spot to see and be seen during his first administration, closing a chapter for a property that was frequented by foreign delegations, lobbyists and party officials.

But he still owns or licenses his name to properties across the globe and recently signed a deal with a Vietnamese developer to open hotels and golf courses there.

Trump has also been expanding prospects in the Middle East.

He signed a deal to develop a multibillion-dollar hotel and golf course on land owned by the Omani government, formalizing business ties with the country while failing to disclose the terms of the deal. Still, The New York Times found the Trump Organization has already brought in $5 million under the deal, which would have them managing the properties for 30 years.

The Trump family has also deepened its relationships with LIV Golf, the Saudi-backed golf organization that had already held numerous tournaments at Trump courses.

The venture is backed by the same Saudi sovereign wealth fund that invested $2 billion in the private equity firm of Jared Kushner, Trump's son-in-law.

The Trump Organization did not respond to a request for comment.

Oversight limitations

Trump has not signed the ethics agreement required under the Presidential Transition Act, leaving few avenues for addressing conflicts of interest as they arise.

It also shields the identity of donors who would otherwise be disclosed as funding the transition.

And while Democrats will likely be eager to probe Trump’s dealings, they face significant roadblocks as the minority party and spent much of Trump’s first administration tied up in lawsuits to gain access to his records, a challenge they’ll face again in a second term.

Trump also isn’t subject to the same conflict of interest laws that apply to other White House staffers — a nod to the breadth of a president’s role.

Groups like CREW sued Trump over emoluments violations during his first term, but courts determined that they didn’t have standing and that the suits would need to come from direct business competitors.

“The problem is there’s no criminal statute,” Painter said. “There’s no mechanism for enforcing the Emoluments Clause other than impeachment by the House and removal by the Senate.”

A frustration of many ethics experts is that guardrails have largely been self-imposed by presidents rather than being a matter of law.

“We are in a weird space now where there's no clear conflict of interest and ethics laws that apply to the president, and there are significant potential for conflicts of interest to appear in this upcoming administration, as it did in the last,” Caputo said.

“There's no clear path forward on how we would deal with that, other than the president-elect choosing to respect the norms that usually come with the office of the presidency. … Because we've been so reliant on these norms, as opposed to having actual legal provisions that would apply, he can essentially decide to do whatever he wants to do.”