### Trump Denounces Sale Rumors, Insists on Retaining Trump Media Shares

Former President Donald Trump adamantly declared on November 8 that he has "no intention of selling" his shares in Trump Media and Technology Group, the company behind his social media platform, Truth Social. This announcement, made on Truth Social three days after his sweeping victory in all seven swing states, followed suggestions that he might sell some or all of his 114,750,000 shares in the company, which recently reported a $19 million loss for the last quarter. Trump dismissed these suggestions as "fake, untrue, and probably illegal," reaffirming his faith in the platform as a crucial element of his successful campaign and second term ambitions.

Trump's stance aligns with his previous refusal to divest from his businesses during his initial term in office. However, this decision could be problematic given the ethical concerns and financial benefits associated with divestment. By securing a certificate of divestiture (CD) from the federal Office of Government Ethics (OGE), Trump could sell his shares, diversify his investments, and defer a significant capital gains tax bill, potentially saving hundreds of millions of dollars.

Certificates of divestiture, common for incoming executive branch officials from the private sector, allow the deferral of capital gains taxes if sale proceeds are reinvested into permitted assets like diversified mutual funds or treasury bonds. Virginia Canter, chief ethics counsel at Citizens for Responsibility and Ethics in Washington and former ethics advisor in multiple government agencies, emphasized the governmental and personal benefits of obtaining a CD. Historical precedents include Hank Paulson, who divested $600 million of Goldman Sachs stock upon becoming Treasury Secretary in 2006, a move facilitated by then White House ethics lawyer Richard Painter.

For Trump, whose net worth has fluctuated dramatically with Trump Media's stock value—ranging from $12.15 to $51.51 per share since September—diversification could be advantageous. Selling his shares at the recent closing price of $28.10 per share could impose around $770 million in taxes on his $3.2 billion in proceeds, which could be deferred with a CD.

However, the president's eligibility for such a certificate is contentious. The Office of Government Ethics statute does not bind the president or vice president. While Walter Shaub, former OGE head, suggested he would have issued a CD for Trump if requested, Don Fox, his predecessor, noted he would have deferred to Congress on the matter. Both Canter and Painter advocated for clarifying or amending OGE regulations to ensure a president could obtain a CD.

Holding onto his shares could have broader implications beyond personal finances, such as regulatory conflicts of interest and potential foreign and domestic influence on Truth Social. Questions about the possible state-sponsored nature of Truth Social if Trump were inaugurated also arise, with parallels drawn to his real estate empire conflicts during his first term. Despite these concerns, Trump downplayed potential conflicts of interest at a Fox News town hall in January, illustrating his apparent lack of concern over the matter.

In a related development, Trump Media sued 20 media outlets, including Forbes, in November 2023 for their reporting on its financial results. The defendants have filed motions to dismiss the claims.