TLDR
- Rep. Maxine Waters introduces “Stop TRUMP in Crypto Act” to ban U.S. officials from owning or promoting cryptocurrencies while in office
- Bill targets Trump’s memecoin ventures and family’s crypto activities including USD1 stablecoin through World Liberty Financial
- Chinese investor Justin Sun reportedly bought over $22 million in TRUMP tokens, raising foreign influence concerns
- Trump hosts exclusive crypto dinner for top 220 TRUMP token holders at his Virginia golf club
- Democratic senators and advocacy groups organize protests outside the dinner venue over ethics concerns
Democratic lawmakers have introduced legislation to restrict cryptocurrency activities by U.S. government officials, timing the announcement to coincide with President Trump’s exclusive crypto dinner event. The proposed bill represents a direct response to growing concerns about political figures’ involvement in digital asset ventures.
Rep. Maxine Waters leads 15 House Democrats in introducing the “Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025.” The legislation would prohibit the president, vice president, and Congress members from owning, promoting, or profiting from digital assets while serving in office. The ban would extend to immediate family members of these officials.
The bill also targets officials’ ability to trade digital assets using material non-public information. Waters states the legislation aims to prevent public officials from using political influence for financial gain through cryptocurrencies. Officials would be banned from receiving compensation from cryptocurrency marketing, mining, or trading activities.
Waters criticized Trump’s crypto ventures as potentially creating conflicts of interest. She describes the activities as “a dangerous backdoor for selling influence over American policies to the highest foreign bidder.” The timing of the bill announcement occurred just hours before Trump’s scheduled crypto dinner.
Trump Family Crypto Ventures Under Scrutiny
Trump and his wife Melania recently launched personal memecoins that have drawn congressional attention. The Trump family also introduced USD1, a dollar-backed stablecoin through World Liberty Financial. The stablecoin received a Binance listing but operates without clear federal oversight.
Trump’s sons are reportedly linked to Bitcoin mining operations and support plans for a national Bitcoin reserve. These connections have prompted lawmakers to question whether political figures are becoming too involved in cryptocurrency markets. The USD1 stablecoin structure remains largely undisclosed to the public.
World Liberty Financial issued the stablecoin with limited transparency about its backing mechanisms. Critics argue this lack of disclosure creates uncertainty about the project’s legitimacy. The venture represents one of several Trump family crypto initiatives that have emerged recently.
Exclusive Dinner Sparks Foreign Investment Concerns
Trump’s crypto dinner at his Virginia golf club invites the top 220 holders of his TRUMP memecoin. Some attendees reportedly spent between $55,000 and $38 million in tokens to secure invitations. The exclusive nature of the event has drawn criticism from Democratic lawmakers and advocacy groups.
Chinese investor Justin Sun, founder of TRON, reportedly purchased over $22 million worth of TRUMP tokens. Sun has faced previous DOJ investigations and SEC lawsuits for alleged fraud and market manipulation. His large investment in Trump’s memecoin raises questions about foreign influence in U.S. political fundraising.
Additional Chinese-linked companies have announced crypto investments tied to Trump tokens. GD Culture Group plans to invest $300 million in TRUMP tokens and Bitcoin. Addentax Group Corp. may acquire up to $800 million in crypto assets including TRUMP tokens through stock-based deals.
Congressional Response and Protests
Democratic senators and advocacy groups organized protests outside the dinner venue. Senators Chris Murphy, Elizabeth Warren, and Jeff Merkley joined Rep. Sam Liccardo in criticizing the event. The group demanded disclosure of attendee names and any promised favors from the administration.
Sen. Richard Blumenthal accused Trump of “auctioning” White House access to foreign investors. Critics argue the dinner structure potentially violates constitutional prohibitions on foreign gifts to U.S. officials. The protest aimed to highlight national security and corruption concerns.
Murphy promoted his recently introduced MEME Act, which targets digital asset profiteering by public officials. The legislation represents another Democratic effort to address cryptocurrency activities by government officials. Both bills reflect growing congressional concern about crypto and politics mixing.
The dinner proceeded with 220 attendees who qualified through their TRUMP token holdings, while protests continued outside the venue.
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