TikTok Denies Trump Memecoin Purchase Allegations Amid Policy Extension

TikTok, the popular social media platform, has vehemently denied allegations that its owners are purchasing TRUMP memecoins. The denial came in response to accusations made by a U.S. Congressman, who claimed that the Chinese-owned platform was involved in such activities. In a statement released through its official TikTok Policy account, the platform refuted the claims, stating that they were false and irresponsible.

The accusations were made by California Democratic Party Representative Brad Sherman, who described the situation as a bribery attempt. Sherman alleged that the owners of TikTok were buying Trump Coins for $300 million. However, TikTok Policy responded by stating that the claims were not only false but also did not accurately reflect a letter signed by Sherman last month.

This exchange occurred shortly after President Trump signed an executive order extending the enforcement of TikTok's 'sale or ban' by an additional 95 days. This is the third extension given to the platform, with the first lapsing on April 5 and the second on June 19. Despite the extensions, President Trump has remained steadfast in his commitment to ensuring the app's safety in the U.S. while working on a potential deal.

TikTok expressed gratitude for President Trump's leadership and support, highlighting the platform's importance for over 170 million American users and 7.5 million U.S. businesses. The platform also mentioned its ongoing work with Vice President Vance’s Office to ensure a positive outcome.

White House press secretary Karoline Leavitt echoed this sentiment, stating that the Trump administration aims to ensure Americans can continue accessing the popular short video app. Leavitt emphasized that the extension would allow the administration to work on closing the deal, ensuring that users' data remains safe and secure.

Sherman, however, argued that U.S. laws permit only one extension and that Trump's decision to delay the 'sell or ban' enforcement on TikTok is illegal and requires critical examination. He referenced a May report where GD Culture Group, connected to TikTok, announced plans to buy $300 million of Trump memecoin and Bitcoin. Although GD Culture does not have an obvious tie with the app or ByteDance, it produces AI-enhanced content on TikTok as one of its main operations.

Sherman's allegations also highlighted his anti-crypto stance, having campaigned for a blanket ban on crypto in 2019. He argued that crypto holds the potential to displace the U.S. dollar. In response, the Trump administration has taken a strong approach on crypto, pledging to promote and strengthen U.S. dollar stablecoins to bolster the U.S. dollar’s position and the country’s reserves.

Experts, however, were skeptical of the alleged relationship between Trump and the Chinese company, questioning Sherman's allegations. Some critics pointed out that no one wants TikTok banned, except for certain interest groups, and suggested that a poll of constituents would reveal their preferences regarding the platform.