President Trump’s public statements are primarily shared on Truth Social, influencing opinions on various topics, including international relations and military actions. Recently, he criticized Ukraine’s President Zelenskyy for U.S. financial support in the conflict. Trump’s connection to Trump Media raises concerns about conflicts of interest as he directly benefits from the platform’s traffic. Furthermore, Trump Media has expanded into financial services, potentially complicating regulatory oversight. Experts caution that Trump’s financial ties could distort public interest, highlighting a significant ethical dilemma compared to his previous term, as he appears more intertwined with business ventures than before.
For those interested in President Trump’s perspectives, his Truth Social account is the go-to source. It features his thoughts on a variety of topics, such as military actions in Somalia, tariffs involving Canada and Mexico, diplomatic relations with Russia, the factors behind a tragic aircraft collision, American claims over the Gaza Strip, and a budget proposal currently under consideration by Congress.
For example, on Wednesday, following initial cease-fire negotiations between the United States and Russia regarding the war in Ukraine, he used his account to criticize Ukraine’s president. “Consider this: a moderately successful comedian, Volodymyr Zelenskyy, persuaded the United States of America to spend $350 billion to engage in a war that was unwinnable and never needed to start,” the Trump post stated. “Zelenskyy better act quickly or he may find his country gone.”
In certain respects, these comments mirror how Mr. Trump utilized Twitter, now referred to as X, as his primary communication platform during his first presidency, with officials labeling his tweets as official White House content.
However, a notable distinction is evident: Mr. Trump is the largest stakeholder in Trump Media & Technology Group, the entity that owns Truth Social, and stands to gain directly if his posts increase engagement on the platform. Although he has placed his Trump Media stocks in a trust managed by his eldest son, he continues to be the primary attraction for the platform that represents the company’s main offering.
His posts on Truth Social exemplify the overlap between Mr. Trump’s official duties and Trump Media. In a surprising action on Wednesday, Trump Media filed a lawsuit against a Brazilian Supreme Court justice responsible for several criminal investigations into Jair Bolsonaro, the former Brazilian president whom Mr. Trump has referred to as one of his “great friends.”
The lawsuit, which accused the judge of unlawfully suppressing conservative voices on social media, appeared to be an attempt to exert influence on the foreign judge as he deliberated whether to issue an arrest warrant for Mr. Bolsonaro.
Moreover, Trump Media intends to expand its offerings beyond social media into financial services, introducing a new dimension for potential conflicts of interest. This enterprise would involve investment vehicles that industry professionals believe will require approval from the Securities and Exchange Commission. Mr. Trump has selected Paul Atkins, a veteran Republican commissioner, to chair the agency, pending Senate confirmation.
In another questionable overlap of interests, Mr. Trump appointed Devin Nunes, the CEO of Trump Media, to lead the President’s Intelligence Advisory Board and Scott Glabe, the company’s general counsel, as a board member.
These developments exemplify a pattern of significantly bolder breaches of the ethical standards regarding conflicts of interest than what was observed during Mr. Trump’s first term, during which foreign dignitaries and others seeking his patronage frequented Mar-a-Lago, his Florida resort, and the opulent Trump hotel near the White House, as noted by ethics lawyers and experts.
“The potential for conflicts of interest has expanded dramatically compared to the president’s first term, as he now holds stakes in a broader array of businesses than he did during his previous time in office,” remarked Daniel I. Weiner, a governmental expert at the Brennan Center for Justice, a nonpartisan think tank focused on democratic matters. He added that the mere perception of the president’s personal interests mingling with the public interest “is extremely corrosive to our political system.”
In response to inquiries from The New York Times regarding the president’s possible conflicts of interest, White House spokesperson Harrison Fields stated, “President Trump is dedicated to utilizing every channel of communication to reach the American people. This, along with his ongoing engagement with the press, solidifies his legacy as the most transparent president in history.”
When asked for commentary, a spokesperson for Trump Media criticized The Times, asserting it was making unfounded implications, while failing to address specific inquiries regarding the company.
Trump Media openly acknowledges its reliance on Mr. Trump’s notoriety and popularity. In a recent filing with the S.E.C., the company noted that Mr. Trump had the ability to limit his posts on Truth Social, “which could materially harm the business.”
However, to prevent the intertwining of his personal financial interests with his official responsibilities, Mr. Trump should refrain from such practices, suggested John Pelissero, a governmental ethics expert at Santa Clara University. “He should, as previous presidents have, utilize only official White House communications for government-related matters rather than for the company he owns.”
Furthermore, Mr. Trump’s communications also contribute to the visibility of X, owned by Elon Musk, who is now a key advisor to Mr. Trump and a special government employee. Typically, Mr. Trump’s significant Truth Social announcements are shared on Mr. Musk’s platform, usually after a delay of several hours, seemingly aimed at increasing traffic for Truth Social.
While Mr. Trump has approximately 101 million followers on X, his following on Truth Social is close to nine million, a figure that has been on the rise since the elections in November.
“Whether through Truth, X, Instagram, or any other social media platform, the president and the White House will persist in communicating directly with the American populace—a long-awaited shift from the previous four years,” Mr. Fields stated when addressing inquiries regarding the president’s reposts on X.
While social media firms face minimal federal regulation, Trump Media’s ambitions to branch out into financial services will place it more directly within the jurisdiction of federal regulatory bodies.
Earlier this month, Trump Media announced plans to allocate up to $250 million toward a venture aimed at providing financial products developed in partnership with Charles Schwab, one of the nation’s largest brokerage firms, along with a small investment firm in New Jersey, Yorkville Advisors. Industry experts suggest that federal regulators might feel inclined to offer favorable evaluations of these products.
Currently, commissioners can only be dismissed for specific reasons, but the Trump administration is challenging the independence of the S.E.C. and other regulatory bodies. An executive order signed on Tuesday mandates that their proposed regulations undergo White House scrutiny, claims authority to obstruct spending against presidential priorities, and stipulates that the agencies must abide by the interpretations of the law put forth by the president and the Justice Department.
Additionally, the Consumer Financial Protection Bureau, a federal watchdog for the financial services sector, is under threat from the White House, which is seeking to dismantle it. Mr. Trump previously denounced the agency as a hub of “waste, fraud and abuse” led by a “vicious group” intent solely on “ruining lives.”
Supporters often highlight the bureau’s efforts, noting it has returned approximately $21 billion to consumers through its various enforcement actions.
Earlier this month, Russell T. Vought, who heads the Office of Management and Budget and was recently appointed as the acting director of the consumer agency, directed staff and contractors at the bureau to cease operations. A federal judge intervened on Friday, ordering a temporary cessation of mass layoffs, data deletions, and funding interruptions at the agency, but the bureau’s future remains uncertain.
In the absence of such oversight, financial service providers may operate without accountability toward consumers, warned Kathleen Clark, a law professor at Washington University in St. Louis specializing in government ethics. In light of Trump Media’s expansive plans, “no wonder he desires to dismantle it,” she remarked.
Ethics professionals have previously cautioned during the electoral campaign that a Trump victory could transform Truth Social into a straightforward means for influencing him. Foreign entities, corporations, and other actors might purchase shares in the company or advertisements on Truth Social in attempts to elevate stock prices and enrich the Trump family.
“A foreign government no longer needs to book an entire hotel floor just to benefit President Trump financially,” Ms. Clark pointed out.
Since the inception of Trump Media in 2021, the company has faced substantial losses and encountered difficulties generating income from Truth Social advertisements or video streaming services. Last year, it reported a revenue of $3.6 million—12 percent lower than the prior year—and expenses totaling $130 million, largely attributed to a merger and the transition to a public entity.
Nevertheless, it holds $777 million in cash, presumably gathered through the merger and stock sales, primarily to Yorkville. Its market capitalization of $6.6 billion is nearly 2,000 times its projected revenue for 2024.
Although Mr. Trump does not occupy a formal position as an officer or director of Trump Media, he owns 53 percent of the company’s shares, equating to approximately $3.5 billion in value. In December, he transferred those shares to a trust solely overseen by Donald Trump Jr., his eldest son and a board member.
However, various legal authorities argue that this action fails to eliminate the connections between his personal financial interests and his presidential duties.
“Whether or not the shares are in a trust is irrelevant,” stated Ms. Clark, “since ultimately the monetary benefits are directed to Trump.”
Julie Tate contributed research.