Trump’s Memecoin Dinner Sparks Legal Threats, Crypto Ethics Debate

Congressional Democrats are sounding alarms over President Donald Trump's controversial $TRUMP memecoin dinner, accusing him of effectively auctioning off political access. The event, set at Trump National Golf Club in Virginia, invites the top 220 holders of the Trump-affiliated token. The memecoin surged in price as investors rushed to qualify for an invitation.

Critics argue this practice invites corruption and foreign influence. Notably, blockchain data shows the largest token-holding wallet is linked to HTX, a crypto exchange associated with Tron founder Justin Sun, who publicly claimed the top holder spot.

Senator Richard Blumenthal called the event a "for sale" sign on the White House and threatened legal action, citing potential violations of the U.S. Constitution’s emoluments clause. Blumenthal and others suggest lawsuits could be pursued by Congress or supported through amicus briefs from public interest groups.

Representative Maxine Waters introduced the Stop TRUMP in Crypto Act, which would ban government officials from holding or promoting crypto assets if they possess insider knowledge. She accused Trump of using the presidency to promote “shady, fraudulent crypto ventures.”

Meanwhile, Senators Elizabeth Warren, Jeff Merkley, and Chris Murphy joined consumer groups to demand transparency, calling on Trump to reveal the dinner’s guest list. Posters reading “release the guest list” and “who’s coming to dinner?” accompanied the Capitol Hill press conference. Warren labeled the gathering an “orgy of corruption,” citing potential foreign influence and untraceable crypto transactions.

While Trump’s team insists the dinner is a personal affair, critics argue it exemplifies a deeper ethical divide in crypto politics. The backlash further highlights the split among Democrats, with some pushing stricter crypto regulations and others seeking bipartisan paths for digital asset legislation.