Donald Trump's newly elected presidency and his extensive business empire are poised to make a significant foray into the cryptocurrency sector. The Trump Media & Technology Group, a company under Trump's ownership, has recently submitted a trademark application for "TruthFi," a prospective cryptocurrency payment processing platform.

While the application lacks detailed information, it outlines a variety of potential services that TruthFi could offer, such as digital wallets, card payment processing, asset management, custody services, and trading in digital assets. It remains uncertain whether Trump Media is seriously considering launching a crypto payment service or at what stage of evaluation they are currently in. Embracing cryptocurrencies could be a strategic diversification move beyond the social media realm.

"The filing of the application suggests that there is substantial internal discussion within the company about introducing cryptocurrency-related products and services," remarked Josh Gerben, a Washington DC-based trademark attorney who noticed the Trump Media trademark application. "The filing was specifically aimed at safeguarding the concept of extending the company's Truth brand into the cryptocurrency sphere." Trump Media has not yet responded to requests for comment on the matter.

The trademark application highlights the complex conflict-of-interest challenges that arise from Trump's election win and his expansive business interests. Trump and his family own businesses that could benefit from key decisions made by his administration, particularly regarding federal regulations. "It's a significant issue, but it's not unique to Trump," said Richard Painter, the chief ethics lawyer in the George W. Bush administration. "It's also a significant problem that members of Congress are trading in cryptocurrencies while failing to pass legislation to regulate them and accepting substantial donations from the crypto industry."

Painter, who is also a law professor at the University of Minnesota, pointed out that criminal conflict of interest laws do not apply to the president, vice president, or members of Congress. However, he suggested that Trump should take clear steps to address the ethical challenges posed by his financial interests. "President Trump should do what every other president has done: Divest personal assets, Trump Organization assets, everything that could create a conflict of interest with his official duties.

This includes Truth Social and cryptocurrencies," Painter stated. It is worth noting that Trump did not divest his assets during his first term and has shown no signs of doing so in this term. In fact, shortly after his victory, Trump dispelled rumors of selling shares in Trump Media by stating on Truth Social: "I HAVE NO INTENTION OF SELLING!"

The news of the trademark application comes just weeks after Trump's election win, which was partly fueled by strong support from the cryptocurrency industry, eager for more favorable regulation from Washington. Soon, Trump will have the opportunity to reciprocate this support—while potentially profiting from the cryptocurrency boom that his election has helped accelerate. Trump, who once criticized bitcoin but has since warmed to it, pledged during his campaign to make the United States the "crypto capital of the planet" and to establish a national cryptocurrency reserve. When he assumes power in January, Trump is widely expected to appoint regulators who will bolster the cryptocurrency industry, which could benefit the company in which he holds a significant stake.

Trump has vowed to replace one of the cryptocurrency industry's most significant adversaries: Gary Gensler, the chairman of the Securities and Exchange Commission. Gensler announced on Thursday that he will resign on January 20, when Trump is inaugurated. Analysts predict that Trump will select a SEC chair who is more crypto-friendly.

The trademark application for a crypto payment service follows closely on the heels of a Financial Times report that Trump Media is in advanced discussions to acquire the crypto trading platform Bakkt. This report caused Bakkt's shares to soar by more than 160%. Bakkt released a statement on Tuesday acknowledging that it was "aware of the rumors" circulating in the media about a potential deal, but it does not "comment on market rumors or speculation."

Beyond the potential move by Trump Media into crypto payments, Trump has numerous other cryptocurrency ventures, including a business launched in September called World Liberty Financial. Earlier this week, Trump chose Cantor Fitzgerald CEO Howard Lutnick to lead the Commerce Department. Lutnick has become a prominent advocate for the cryptocurrency firm Tether, which has faced investor concerns about its operations.