Trump Media's TruthFi Sparks Conflict Concerns

Trump Media and Technology Group announced its expansion into financial services with the launch of Truth.Fi, causing its stock to surge by as much as 17% in premarket trading. The company plans to invest up to $250 million, a portion of its $700 million cash reserves, into diverse assets including Bitcoin and other cryptocurrencies, exchange-traded funds (ETFs), and separately managed accounts. Charles Schwab will serve as the custodian and advisor for these investments. This move aligns with Trump Media's strategy to create an 'America First' investment ecosystem, focusing on sectors like American manufacturing and energy. Truth.Fi, expected to launch in 2025, marks the company's further foray into fintech and decentralized finance following previous ventures in social media and streaming services. The initiative has raised potential conflict of interest concerns, given Donald Trump's role as the majority owner and his influence over federal financial market regulations.