Former President Donald Trump is in hot water again. He is preparing to host a rooftop dinner party with the lead investors in the $TRUMP meme coin. This event, which has drawn the attention of lawmakers and political commentators alike, raises questions about the ethics of his close ties to the cryptocurrency industry, particularly given his past statements and involvement in the sector.
When campaigning for president, Trump made headlines by saying he wanted to be the nation’s first “Crypto President.” His interest in digital currencies has quickly increased in the meantime. As the 2024 presidential primary season heats up, reports show that he has received large campaign contributions from the crypto industry. Just three days into his term, he issued an Executive Order aimed at establishing a regulatory framework to promote the growth of digital currencies, signaling his commitment to the sector.
State Democracy Defenders Action recently discovered that Trump’s investments in cryptocurrency have significantly boosted his net worth. If so, he could be up by as much as $2.9 billion! Significantly, he is the controlling shareholder of World Liberty Financial, a cryptocurrency exchange that was started right before the election. The Trump family is now actively engaged with the new $TRUMP meme coin. This meme coin has taken the crypto world by storm.
Our next black-tie optional dinner will see invites issued to the first 220 $TRUMP meme coin buyers. Critics, including Senator Chris Murphy (D-CT), have questioned whether it is ethical to hold such an event. Murphy suggested that most of the people walking through it will be international visitors. Critics likened the invite-only lobbyist and industry-dominated gathering to a form of “purchasing access to the President.”
“It’s fundamentally corrupt — a way to buy access to the President.” – Chris Murphy
Murphy’s remarks are part of a wider phenomenon of fears about foreign influence on American politics. He singled out one potential loophole, a problematic way for deep-pocketed foreigners to avoid his surcharge. They may be able to circumvent the usual routes and lobby directly to the President.
Billionaire crypto entrepreneur Justin Sun, the largest investor in the $TRUMP meme coin, recently expressed his desire to crash the dinner. Picture his high-profile fraud and market manipulation allegations brought against him by the U.S. Securities and Exchange Commission. Sun called himself Trump’s “TOP fan!” in a catchphrase from the same meme coin, showing his enthusiasm for both Trump and the meme coin.
A spokesperson from Trump’s administration, surely sweating bullets amidst the controversy, took a hard line. They argued that engaging in the $TRUMP opportunity bears no connection or relation to the White House. Anna Kelly, a former Trump administration official, asserted, “The President is working to secure GOOD deals for the American people, not for himself.”
The exclusive dinner arrangement has come under more severe scrutiny considering Trump’s past comments on cryptocurrencies. In 2021, as the SEC chair, he called Bitcoin a “scam,” which only deepened suspicion about his about-face on digital currencies.
Timothy Massad, a former chairman of the Commodity Futures Trading Commission, critiqued the situation by stating, “It’s like selling membership cards for his personal fan club which are then traded.” He pointed out that even if these meme coins have no underlying value, the speculation on their price will make Trump rich.
“They have no value. But people speculate on the price and those purchases and that trading enriches him.” – Timothy Massad
More worrisome for reformers, critics point out that these events muddy the ethics conversation. Taken together, they claim foreign investment in American politics becomes much more controversial. Murphy said that it generates future paths for foreign nationals to gain influence and lobby in a direct way.
Not all lawmakers share Murphy’s concerns. Senator Marco Rubio (R-FL) defended Trump by stating, “I don’t have any concern that the president having dinner with someone is going to contravene the security of the United States.” This rift between our elected leaders further highlights the confusion surrounding Trump’s unsteady, and rapidly changing, alliance with crypto.
Rob Hadick, another industry expert, addressed concerns regarding cryptocurrency’s utility, saying, “This is something that doesn’t have obvious utility. It’s not being used for payments. It’s not being used as a store of value.”