Stop TRUMP in Crypto: Democrats Propose Bill to Curb Presidential Crypto Dealings

Explore how the ‘Stop TRUMP in Crypto Act’ aims to prevent presidential cryptocurrency dealings amid controversy over Trump’s $148 million meme coin dinner and growing concerns about conflicts of interest.

Democrats Introduce Legislation Targeting Trump’s Cryptocurrency Ventures

In a direct challenge to President Donald Trump’s cryptocurrency endeavors, Representative Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, introduced the “Stop TRUMP in Crypto Act of 2025” on Thursday. The timing was strategic, coinciding with Trump’s controversial private dinner at his golf club with the top 220 holders of his meme coin.

The legislation explicitly targets the president’s growing crypto empire, which has generated billions in unrealized gains since he returned to office. If passed, the bill would prevent the president, vice president, members of Congress, and their immediate family members from launching or owning cryptocurrency assets while in office.

“Donald Trump is preparing to dine with the top donors of his memecoin who’ve made him, and his family, richer,” Waters stated. “For all we know, Russia, China, or even North Korea could be buying Trump’s crypto to secure favors from the White House. Enough is enough. Congress can no longer ignore the biggest scam and abuse of power in American history.”

Rep. Maxine Waters introducing legislation to curb presidential crypto dealings. [Source: CoinGape]

The $148 Million Dinner: Access and Influence Concerns

The event at Trump’s private golf club in Sterling, Virginia, drew approximately 220 investors who collectively spent an estimated $148 million on $TRUMP meme coins to secure their seats. The top 25 holders, who spent more than $111 million, enjoyed a private VIP reception with the president, while the four largest investors received limited edition Trump Tourbillon watches valued at $100,000 each.

As Trump arrived by Marine One helicopter, more than a hundred protesters gathered outside the venue with signs reading “America is not for sale,” “stop crypto corruption,” and “release the guest list.”

According to reports, attendees were served an organic field green salad, filet mignon, pan-seared halibut, garlic mashed potatoes, and a vegetable medley, followed by a warm lava cake. The golden-lettered menu was shared on social media by participants, who also posted videos of Trump addressing the crowd.

“I always put the country way ahead of the business,” Trump told attendees. “You become president of the United States, and you want to see people thrive and succeed. The Biden Administration persecuted crypto innovators and we’re bringing them back into the USA where they belong.”

Protesters outside Trump’s golf club during the meme coin dinner. [Source: The Independent]

Foreign Influence and Anonymity Concerns

Democrats have expressed alarm over the identities of dinner attendees, with blockchain analysis suggesting more than half of the 220 holders who attended the event are likely based outside the United States.

Among those confirmed to attend was China-born crypto entrepreneur and billionaire Justin Sun, who posted a video of himself entering the ballroom dressed in a tux. Sun won first place in the dinner contest with his $18.5 million wallet and is also the largest publicly known investor in World Liberty Financial, the Trump family’s crypto platform.

Notably, the U.S. Securities and Exchange Commission paused its 2023 fraud case against Sun in February, citing public interest—a move that has raised eyebrows given Sun’s close ties to Trump’s crypto ventures.

“Reportedly, there’s going to be a guy there tonight called Ogle,” noted Connecticut Senator Chris Murphy. “That’s it. That’s all we know about this guy. He wears a mask all the time.”

When reached for comment by Reuters, Ogle, who placed 22nd in the contest with $3.6 million worth of $TRUMP coin, said he uses a pseudonym and appears in interviews with his face obscured for safety concerns related to his pro bono work helping victims of crypto criminals.

Justin Sun, top holder of TRUMP meme coin, at the dinner. [Source: NPR]

Profits for the Few, Losses for Many

While the dinner celebrated the top holders of $TRUMP coin, analysis reveals a concerning distribution of profits and losses. According to The Guardian’s analysis of crypto wallets, 43% of the 220 winners (95 attendees) have suffered a net loss from purchasing $TRUMP since the coin’s January launch, totaling a combined $8.95 million in losses.

One contestant under the username “GAnt” appears to have endured the biggest loss at $1.06 million, despite placing fourth on the leaderboard. Similarly, user “Meow” is down $621,000, despite achieving VIP status.

This aligns with broader data showing approximately 764,000 wallets—mostly belonging to small holders—have lost money on $TRUMP, according to cryptocurrency analytics firm Chainalysis. Meanwhile, just 58 wallets have made more than $10 million each on their purchases of the coin.

Trump-affiliated entities—notably CIC Digital LLC and Fight Fight Fight LLC—issued the coin and own 80% of its supply, which will be gradually unlocked throughout his term. These entities have made approximately $320 million in trading fees as of early May, according to Chainalysis data published by CNBC.

Details of the “Stop TRUMP in Crypto Act”

The bill introduced by Rep. Waters would specifically forbid Trump, while in office, from:

• Issuing, sponsoring, promoting, or receiving any compensation from the “sale, marketing, or mining of any digital asset in the United States”
• Trading any digital assets while president that he has material non-public information about
• The legislation would also apply these rules to the president’s spouse, his children, and his children’s spouses

The bill is currently co-sponsored by 14 of the 23 other Democrats on the House Financial Services Committee, in addition to Ranking Member Waters.

Protesters gathered to criticize the crypto dinner event. [Source: NBC News]

Impact on Crypto Legislation and Industry

Trump’s crypto dealings have complicated efforts to pass comprehensive cryptocurrency legislation. Several bills aimed at offering formal legal pathways for issuing and trading various digital assets in the United States have faced challenges due to perceived conflicts of interest involving the president.

Earlier this month, Rep. Waters led a Democratic walkout of a crypto-focused meeting of the House Financial Services Committee in protest of “Trump’s crypto corruption.” The intention was to compel lawmakers to add language to crypto regulation bills that would force Trump to divest from his crypto businesses while in office.

Even some Trump allies are expressing reservations, with Republican Senator Cynthia Lummis, a staunch crypto industry advocate, saying the dinner gives her “pause.” Some pro-Trump crypto enthusiasts also worry that the president’s personal involvement may be undermining their efforts to establish credibility for the industry.

“It’s distasteful and an unnecessary distraction,” said Nic Carter, a Trump supporter and partner at the crypto investment firm Castle Island Ventures, who said the president is “hugging us to death” with his private crypto businesses. “We would much rather that he passes common sense legislation and leave it at that.”

Ethical and Regulatory Questions

The president lauding high-risk and opaque assets coincides with a wider easing of financial regulation. Until recently, the Securities and Exchange Commission viewed most cryptocurrencies as securities, not commodities. However, under new leadership, the regulator issued guidance stating that meme coins are “akin to collectibles” and thus “neither meme coin purchasers nor holders are protected by the federal securities laws.”

Despite this view, experts suggest the unique conditions of Trump’s meme coin may justify securities classification regardless. Corey Fraye, the director of investor protection for the Consumer Federation of America, believes that $TRUMP could pass the Howey test—the legal framework used to determine whether a transaction qualifies as an investment contract under securities laws.

“The promotion of these tokens to a reasonable investor would create an expectation of profit related to this entire scheme that they think they’re buying into,” says Fraye.

Conclusion: A Growing Political Battle

As the debate over Trump’s crypto ventures intensifies, the “Stop TRUMP in Crypto Act” represents the latest salvo in a growing political battle over the intersection of public office and digital assets. While similar bills, including the MEME Act, have been introduced in Congress this year, none have yet managed to attract Republican support.

With Republicans holding majority control of both the U.S. House and Senate, Democrats have limited ability to pass legislation or call for formal investigations. However, the controversy surrounding Trump’s crypto dealings continues to raise fundamental questions about conflicts of interest, foreign influence, and the proper relationship between government officials and emerging financial technologies.

Whether the Stop TRUMP in Crypto Act gains traction or not, it has succeeded in drawing attention to these critical issues at a time when the cryptocurrency industry is seeking regulatory clarity and legitimacy in the United States.